PRICE 200 150 100 50 25 50 75 QUANTITY D D' 100 125 150 Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus? a. Producer surplus increases by $3.125

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PRICE 300 O a. 250 O b. O c. O d. 200 150 100 50 Select one: 25 50 in S 75 QUANTITY D Refer to Figure 7-5.If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus in equilibrium? S D' 100 125 150 Producer surplus increases by $1,875. Producer surplus increases by $625. Producer surplus decreases by $1,875. Producer surplus decreases by $625.

Figure 7-5 Price P₁ B C a. D b. AX O OC. B Od. C D Refer to Figure 7-5. What area represents producer surplus when the price is P1? Quantity

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' surplus For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount Alice has a Alice's surplus: $ producer surplus. surplus consumer Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $50o Nicole has a Nicole's surplus: $ producer surplus. consumer surplus

7. Producer Surplus Suppose the demand for tomato juice falls. Illustrate the effect this has on the market for tomato juice. Supply Demand Supply Demand Quantity of Tomato Juice Producer surplus in the market for tomato juice Price of Tomato Juice

4. Suppose the market for apples are shown in the graph below, Calculate Consumer surplus _____________ and Producers Surplus _________________.

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