I need Bonus Work Assignment (Week 15) Due Date: Sunday of Week 15 at 11:59pm In

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I need
Bonus Work Assignment (Week 15) Due Date: Sunday of Week 15 at 11:59pm Instruction 1. This Bonus Work assignment is designed to help you to test yourself about understanding 2. You will receive points for your correct answers to bonus questions. These points are extra 3. The questions in this bonus work assignment are from the lecture notes of this week. They 4. You must submit your bonus work on Blackboard Learn. To submit your work for the topics covered in this week. points, which will help your course grade. have been discussed in the instructor's video lectures. credit, you can simply type your answers in the submission box on the same page as the Bonus Assignment on Blackboard Learn or you can submit your work as an attachment through Blackboard Learn by clicking "Attachment" on the assignment page, then click "Submit If you type your answers in Microsoft Word, you can just submit your file as an attachment by click "attachment" and then click "submit" on the assignment page on Blackboard Learn. Please include your name in the file name that you will submit. If you hand-write your answers, you can scan your answer sheets to a PDF file, and then submit your file as an attachment by click "attachment" and then click "submit" on the assignment page on Blackboard Learn. Please write your name in the file name that you submit. - Bonus Work Questions (Three points for each question) 1. In your own wards explain what is the consumer surplus and what is the producer surplus. 2. Explain why both consumers and producers feel good when consumer and producer surpluses exist.

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Question 1

Question 2

The consumer is anyways willing to pay more than the market price to purchase the commodity. So , when he gets a commodity at the market price(the equilibrium price), she feels good.

Similar is the case with the producers.

The producers may be willing to sold the commodity at a price much lower than the market price. Hence, when the producer is able to sell the commodity at the equilibrium price, she feels good.

Consumer surplus is the difference between the price that consumers are willing to pay—based on their preferences—and the market equilibrium price.

Producer surplus is the difference between the price for which producers are willing to sell a product—based on their costs—and the market equilibrium price.

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