amanda goes to a local café and orders a sandwich. she is willing to pay $10 for it. the price of the sandwich is $4. the cost to the café to produce the sandwich is $1. how much economic surplus does the café receive when amanda purchases the sandwich?

Economic surplus for the café is the difference between the price it receives for the sandwich and the cost to produce it.

• Price of sandwich = $4
• Cost to café to produce sandwich = $1

Economic surplus = Price received - Cost to produce
Economic surplus = $4 - $1 = $3 So, the café receives an economic surplus of $3 when Amanda purchases the sandwich.