Table 4-14

-Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of producer surplus?
A) $50 thousand
B) $112.5 thousand
C) $225 thousand
D) $337.5 thousand

Question

Table 4-14
 
-Refer to Table 4-14. The equations above describe the demand and supply for Pauline's Pickled Pomegranates. The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units. What is the value of producer surplus?
A) $50 thousand 
B) $112.5 thousand 
C) $225 thousand 
D) $337.5 thousand

Quizplus · Accepted Answer

Producer surplus is calculated as the area above the supply curve and below the equilibrium price. Given the equilibrium price of $30 and equilibrium quantity of 15 thousand units, the producer surplus is $112.5 thousand.

Table 4-14 -Refer to Table 4-14. the Equations Above Describe the Demand