Answer to Question #155128 in Economics for Zero ughu

Question

Suppose you own a nice old guitar you want to sell.

To you it is valued 300. A friend of yours likes it and is willing to pay 900 euros to have it. How much is the total surplus if you sell it to your friend at 500?

Answer 1

$$500-300=200$$

This is surplus for you? but for your friend will be

$$900-500=400$$

In total surplus

$$200+400=600$$