Figure 9-5

-Refer to Figure 9-5.Without trade,producer surplus amounts to

Question

Figure 9-5
 
-Refer to Figure 9-5.Without trade,producer surplus amounts to

Quizplus · Accepted Answer

Without trade, the equilibrium price would be $15 and the equilibrium quantity would be 30.

Producer surplus can be calculated as the area above the supply curve and below the equilibrium price.

Producer surplus = 0.5 x base x height

Producer surplus = 0.5 x 30 x ($20 - $15)

Producer surplus = $75 x 2

Producer surplus = $150

Therefore, without trade, the producer surplus would be $150.

Figure 9-5 -Refer to Figure 9-5.Without Trade,producer Surplus Amounts to