roy is willing to pay $2.50 for a sports drink. he puts $5.00 into the vending machine and pushes the button…

roy is willing to pay $2.50 for a sports drink. he puts $5.00 into the vending machine and pushes the button for the sports drink without noticing that the price has increased to $2.75 until he counts the change he gets back. roy has a producer surplus consumer surplus roys surplus: $

roy is willing to pay $2.50 for a sports drink. he puts $5.00 into the vending machine and pushes the button for the sports drink without noticing that the price has increased to $2.75 until he counts the change he gets back. roy has a producer surplus consumer surplus roys surplus: $

Answer

Explanation:

Step1: Determine surplus type

Roy is a consumer, so consumer surplus.

Step2: Calculate consumer surplus

Willingness to pay - Actual price = $2.50 - $2.75

Step3: Compute the value

$2.50 - $2.75 = -$0.25

Answer:

consumer surplus; -0.25