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?
A)$0
B)$5
C)$10
D)$125
E)$250

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?
A)$0 
B)$5 
C)$10 
D)$125 
E)$250

Quizplus · Accepted Answer

The producer surplus at the free-market equilibrium is the area above the supply curve and below the equilibrium price. In this case, it is $125.

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