Refer to the accompanying figure. When this market is in equilibrium, total producer surplus in the market is ________ per day.

Name: Refer to the accompanying figure. When this market is in equilibrium, total producer surplus in the market is ________ per day.
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Question

Quizplus · Accepted Answer

Producer surplus is the area of the triangular region below the market price and above the supply curve. The area of any triangle is ½ × base × height, so producer surplus in this market equals ½ × 25 × $20 = $250.

Refer to the Accompanying Figure