Market Supply and Demand for Pepperoni Pizza
Table 7-5

-Refer to Table 7-5.As the table suggests,the demand curve is a straight line and so is the supply curve.Taking this into account,when there is equilibrium,producer surplus is

Question

Market Supply and Demand for Pepperoni Pizza
Table 7-5
 
-Refer to Table 7-5.As the table suggests,the demand curve is a straight line and so is the supply curve.Taking this into account,when there is equilibrium,producer surplus is

Quizplus · Accepted Answer

In equilibrium, producer surplus is the area above the supply curve and below the equilibrium price. Given the straight-line supply curve, the producer surplus is a triangle with a base of 8 units and a height of 8 dollars, resulting in an area of 32.