Producer Surplus: To determine the initial producer surplus, we need to locate the region between the supply curve and the equilibrium price line. At the equilibrium price of around $35.71, the amount that would be supplied can be determined, the quantity supplied would be: Q=50+2(35.71)= 121.43 In order to accurately calculate the initial producer surplus, it is imperative that we calculate the area of the triangle formed by the intersection of the supply curve and the equilibrium quantity. Failure to do so may result in inaccurate assessments and flawed conclusions. Initial Producer Surplus = (1/2) x (35.71-0) x (121.43-50) = $1,767.86 Based on our calculations of the area of the triangle formed by the intersection of the supply curve and the equilibrium quantity, we can estimate that the initial producer surplus amounts to around $1,767.86.

Producer Surplus: To determine the initial producer surplus, we need to locate the region between the supply curve and the equilibrium price line. At the equilibrium price of around $35.71, the amount that would be supplied can be determined, the quantity supplied would be: Q=50+2(35.71)= 121.43 In order to accurately calculate the initial producer surplus, it is imperative that we calculate the area of the triangle formed by the intersection of the supply curve and the equilibrium quantity. Failure to do so may result in inaccurate assessments and flawed conclusions. Initial Producer Surplus = (1/2) x (35.71-0) x (121.43-50) = $1,767.86 Based on our calculations of the area of the triangle formed by the intersection of the supply curve and the equilibrium quantity, we can estimate that the initial producer surplus amounts to around $1,767.86.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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