The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
FIGURE 12- 4
-Refer to Figure 12- 4.What is the value of the producer surplus generated in this market at the free- market equilibrium?

Question

The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
  FIGURE 12- 4
-Refer to Figure 12- 4.What is the value of the producer surplus generated in this market at the free- market equilibrium?

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers receive for a good and the minimum price they are willing to accept. In this case, the free-market equilibrium price is $10, and the minimum price producers are willing to accept is $5. Therefore, the producer surplus is $10 - $5 = $5.

The Diagram Below Shows Supply,demand,and Quantity Exchanged of Monday Matinee