Answer:
Total surplus will be $0.50
Explanation:
We have given consumer maximum payable amount = $1.75
Producers minimum amount to receive = $1.25
Price paid = $1.68
We have to find the total surplus
Total surplus will be equal to
Total surplus = consumer surplus + producer surplus
Consumer surplus = consumer maximum amount willing to pay - amount paid = $1.75-$1.68 = $0.07
Producer surplus = price received - producer minimum willingness to pay = $1.68 - $1.25 = $0.43
So total surplus = $0.07+$0.43 = $0.50
