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Figure: Market for Hamburgers
-(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine, Kentucky. If the price of burgers falls from $1.50 to $1.00, there is a loss in producer surplus. How much of the loss accrues because of the change in the quantity supplied?
A) $50
B) $45
C) $75
D) $90

Question

Use the following to answer questions:
Figure: Market for Hamburgers 
-(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine, Kentucky. If the price of burgers falls from $1.50 to $1.00, there is a loss in producer surplus. How much of the loss accrues because of the change in the quantity supplied?
A) $50 
B) $45 
C) $75 
D) $90

Quizplus · Accepted Answer

The loss in producer surplus due to the change in quantity supplied is represented by the area of the triangle formed between the two supply quantities at the prices of $1.50 and $1.00. This area is calculated as 0.5 * (change in price) * (change in quantity), which equals $50.

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