Use the following to answer question:
-(Table: Producer Surplus and Phantom Tickets)The table Producer Surplus and Phantom Tickets shows the minimum price at which each of the students is willing to sell a ticket to Phantom of the Opera.Assume that each student has only one ticket to sell.Given the information in the table,if these students can sell their Phantom tickets for only $5,then:
A)Tim will be the only student not to sell his ticket.
B)Whitney,Ralph,and Rick will sell their tickets.
C)the total producer surplus for the five students will be $4.
D)the total producer surplus for the five students will be $330.

Question

Use the following to answer question: 
-(Table: Producer Surplus and Phantom Tickets)The table Producer Surplus and Phantom Tickets shows the minimum price at which each of the students is willing to sell a ticket to Phantom of the Opera.Assume that each student has only one ticket to sell.Given the information in the table,if these students can sell their Phantom tickets for only $5,then:
A)Tim will be the only student not to sell his ticket. 
B)Whitney,Ralph,and Rick will sell their tickets. 
C)the total producer surplus for the five students will be $4. 
D)the total producer surplus for the five students will be $330.

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. If tickets can only be sold for $5, and assuming the minimum prices at which students are willing to sell are all below $5 except for one (not specified in the question but implied by the options), then those who sell their tickets will have a surplus equal to the difference between $5 and their minimum selling price. Without specific prices, we can infer that the total surplus must be relatively low, making option C the most plausible given the information provided.

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