which is the best example of Producer Surplus? O Tom\'s cabinet shop sold a cabi
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Question
which is the best example of Producer Surplus? O Tom's cabinet shop sold a cabinet that normally sells for $400 for $350 but it costs the store $300 to produce 0 the least that Sam's Clock store will accept from a buyer for its clock is $500 but another seller will sell the same clock for $450 Rising rents made Salmon raise the price of his donuts by 15% Sandy would have paid $400 for a guitar but actually paid $300 for it O D Question 17 5 pts A minimum wage law sets a wage at a given level and not allowed to go lower. This is an example of a O a fair way to reduce unemployment price floor price ceiling increases producer surplusExplanation / Answer
Producer surplus is when the producer gets more than what he deserved or expected for. In the case, in option (a) the selling cost of $400 and the cost of production is $300 with which, the producer surplus is around $100.
Therefore (a) Tom's cabinet shop sold a cabinet that normally sells for $400 or $350 but the cost ofaking was $300 is the answer
It is known that the best example of a price floor is a minimum wage where the suppliers of labor are the employees and the consumer is the company on the whole.
Therefore (b) price floor is the answer
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