Use the following to answer question:
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine,Kentucky.If the price of burgers falls from $1.50 to $1.00,there is a loss in producer surplus.How much of the loss accrues as a direct result of the hamburgers that are no longer supplied in the market?
A)$50
B)$45
C)$75
D)$90

Question

Use the following to answer question: 
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine,Kentucky.If the price of burgers falls from $1.50 to $1.00,there is a loss in producer surplus.How much of the loss accrues as a direct result of the hamburgers that are no longer supplied in the market?
A)$50 
B)$45 
C)$75 
D)$90

Quizplus · Accepted Answer

The loss in producer surplus is the area of the triangle below the old supply curve and above the new supply curve. The base of the triangle is the change in quantity supplied, which is 50 hamburgers. The height of the triangle is the change in price, which is $0.50. Therefore, the area of the triangle is $0.50 * 50 = $25.

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