Figure 9.1
-Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is
A) $30.
B) $70.
C) $400.
D) $800.
E) $1200.

Question

Figure 9.1
-Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is
A) $30. 
B) $70. 
C) $400. 
D) $800. 
E) $1200.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the equilibrium price. In equilibrium, this area is typically a triangle, and its value can be calculated using the formula for the area of a triangle: (1/2) * base * height. The specific values for base and height would be derived from the equilibrium price and quantity in Figure 9.1, leading to a producer surplus of $400.

Figure 9.1 -Refer to Figure 9.1. If the Market Is in Equilibrium