Figure 9.7
-Refer to Figure 9.7. Without counting any government payments received by firms, as a result of this policy the producer surplus earned on the units sold in the market
A) rose by $15,000.
B) rose by $20,000.
C) rose by $40,000.
D) fell by $5,000.
E) fell by $45,000.

Question

Figure 9.7
-Refer to Figure 9.7. Without counting any government payments received by firms, as a result of this policy the producer surplus earned on the units sold in the market
A) rose by $15,000. 
B) rose by $20,000. 
C) rose by $40,000. 
D) fell by $5,000. 
E) fell by $45,000.

Quizplus · Accepted Answer

The producer surplus earned on the units sold in the market rose by $15,000 because the price of the product increased from $5 to $10 per unit, and the quantity sold increased from 1,000 to 2,000 units.

Figure 9.7 -Refer to Figure 9.7. Without Counting Any Government Payments Received