Answered: Refer to the figure above. Total…

Refer to the figure above. Total producer surplus received by the seller at equilibrium is: A. $100 B. $125 C. $200 D. $625

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to the figure above. Total producer surplus received by the seller at equilibrium is:

A. $100

B. $125

C. $200

D. $625

P/unit
55
45
35
25
25
15
5
S
D
2 4 6 8
10 12
14 16
18 20
(each/week)

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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