10. How changing prices affect producer surplus The following graph shows the su
ID: 1131222 • Letter: 1
Question
10. How changing prices affect producer surplus The following graph shows the supply curve for a group of students looking to sell used graphing calculators. Each student has only one used calculator 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 calculator PRICE IDollars per used calculatorl 360 300 Fabio Ella 240 180 Doug 120 Casey 60 Bob Amy QUANTITY (Used calculators Area A (the red shaded area) represents total producer surplus when the market price is (the grey shaded area) represents which of the following? , while Area B Total producer surplus when the market price is $150 O The change in total producer surplus when the market price changes from $240 to $210 Total producer surplus when the market price is $210 The change in total producer surplus when the market price changes from $150 to $210 What does the market price of a used graphing calculator need to be in order for Fabio to gain a producer surplus of $20 from selling a used calculator? Session s3:53 350 O $320 O $280 300Explanation / Answer
Total producer surplus when market price is 150
320 because then producer surplus =320-300=20
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