(Figure: The Market for Apple AirPods) Use Figure: The Market for Apple AirPods. Assume that Sd represents the domestic supply curve and that Dd represents the domestic demand curve. In the market for Apple AirPods, producer surplus without trade equals:

Question

Quizplus · Accepted Answer

The producer surplus without trade is the area above the supply curve and below the equilibrium price. In this case, the equilibrium price is $150 and the domestic supply curve intersects the demand curve at a quantity of 20 million. Therefore, the producer surplus without trade is:

(1/2) * (150 - 100) * 20 million = $1.5 billion

which is equivalent to $1,500 million or $1,500,000.

(Figure: the Market for Apple AirPods) Use Figure: the Market