The following graph shows the supply curve for a group of students looking to sell used tablets. Each student has only one used tablet to sell. Each rectangular segment under the supply curve represents the “cost,” or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used tablet. ?420350Poornima280ManuelB210Kate140AHubertEileen70Clancy+>00134625QUANTITY (Used tablets)Region A (the purple shaded area) represents the total producer surplus when the market price is $while Region B (the grey shaded area)when the market pricerepresentsIn the following table, indicate which statements are true or false based on the information provided on the previous graph.FalseStatementTrueProducer surplus is smaller when the price is $245 than when it is $175Assuming each student receives a positive surplus, Hubert will always receive less producer surplus than Kate.In order for Poornima to earn a producer surplus of exactly $105 from selling a used tablet, the market price needs to be $PRICE (Dollars per used tablet)

Producer Surplus is the difference between the minimum price at which the producer is willing to…

Answered: ? 420 350 Poornima 280 Manuel B 210…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph shows the supply curve for a group of students looking to sell used tablets. Each student has only one used tablet to sell. Each rectangular segment under the supply curve represents the “cost,” or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used tablet.

?
420
350
Poornima
280
Manuel
B
210
Kate
140
A
Hubert
Eileen
70
Clancy
+>
0
0
1
3
4
6
2
5
QUANTITY (Used tablets)
Region A (the purple shaded area) represents the total producer surplus when the market price is $
while Region B (the grey shaded area)
when the market price
represents
In the following table, indicate which statements are true or false based on the information provided on the previous graph.
False
Statement
True
Producer surplus is smaller when the price is $245 than when it is $175
Assuming each student receives a positive surplus, Hubert will always receive less producer surplus than Kate.
In order for Poornima to earn a producer surplus of exactly $105 from selling a used tablet, the market price needs to be $
PRICE (Dollars per used tablet)

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