Figure 7-10

-Refer to Figure 7-10.If the equilibrium price rises from $50 to $200,what is the producer surplus to new producers?
A) $625
B) $3,750
C) $5,625
D) $10,000

Question

Figure 7-10
 
-Refer to Figure 7-10.If the equilibrium price rises from $50 to $200,what is the producer surplus to new producers?
A) $625 
B) $3,750 
C) $5,625 
D) $10,000

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a producer is willing to supply a good and the actual price received. In this case, the producer surplus for new producers can be calculated as the area of the green rectangle ($200-$50) multiplied by the quantity supplied (15,000 units), divided by 2. 
So, producer surplus = (($200-$50) x 15,000) / 2 = $5,625. Therefore, the correct answer is C.

Figure 7-10 -Refer to Figure 7-10.If the Equilibrium Price Rises from $50