If the producers’ surplus is $50, and the consumers’ surplus is $40, then what is the minimum selling price of the good?

There is not enough information in this question, but I can explain the concept using an example. Good A sells for $150. Producer surplus = $50 and consumer surplus = $40.

The minimum selling price in this example would be $100, where producer surplus = $0.

Explanation:

Producer surplus refers to the difference between the minimum price that a supplier is willing to sell its goods or services versus the actual selling price of the goods or services. E.g. a producer could be willing to sell its goods at $100, but the selling price is $150, so producer surplus = $50

Consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a good or service and the actual price of the good or service. E.g. a consumer is willing to pay $190 for a good but its selling price is $150, so consumer surplus = $40.

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