Answer:
The total surplus created by the transaction is $14,000.
Explanation:
Price of selling the car = $ 25,000
Minimum price = $19,000
Maximum price = $33,000
Seller surplus = selling price of car - minimum price the seller would accept
= $25,000 - $19,000
= $ 6,000
Buyer surplus = price buyer is willing to pay - price paid by buyer
= $33,000 - $25,000
= $ 8,000
Total surplus = seller surplus + buyer surplus
= $6,000 + $8,000
= $14,000
