Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. 1. Even though I was willing to pay up to $191 for a used laptop, I bought a used laptop for only $185. 2. Even though I was willing to pay up to $217 for a watch and even though the seller was willing to go as low as $207 in order to sell it, we couldn't reach a deal because the government imposed a tax of $16 on the sale of watches. 3. Even though I was willing to pay up to $69 for a used textbook and even though the seller was willing to go as low as $58 in order to sell it, we couldn't reach a deal because 0 the government imposed a tax of $20 on the sale of textbooks.

1. Consumer Surplus

2. Neither

3. Neither

Explanation:

Consumer Surplus is the difference between prevailing price & the maximum price consumers are willing to pay for a commodity

Producer Surplus is the difference between prevailing price & minimum price at which sellers are willing to sell a commodity

1. ' Even though I was willing to pay up to $191 for a used laptop, I bought a used laptop for only $185 ' : shows the difference between price paid by consumer (185) &  maximum price consumer was willing to pay (191). So, it illustrates the case of Consumer Surplus.

2) & 3) don't illustrate case for any Surplus, as they have not arrived at a transaction price decision - based on supply & demand because of tax imposed by government.  

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