Essentials of Economics 7th Edition by Gregory Mankiw

Exercise 5

Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage. Colleen was willing to pay as much at $300 for the massage, but they negotiate a price of $200. In this transaction,
A) consumer surplus is $20 larger than producer surplus.
B) consumer surplus is $40 larger than producer surplus.
C) producer surplus is $20 larger than consumer surplus.
D) producer surplus is $40 larger than consumer surplus.