Figure 7-6
-Refer to Figure 7-6.If the price of the good is $14,then producer surplus is

Question

Figure 7-6 
-Refer to Figure 7-6.If the price of the good is $14,then producer surplus is

Quizplus · Accepted Answer

The producer surplus is the area above the supply curve and below the price. In this case, at a price of $14, the quantity supplied is 18. So, the producer surplus is the triangle above the supply curve and below the $14 price, which equals (1/2) x (18-6) x ($14-$2) = $72/2 = $36. However, the shaded area on the graph represents the consumer surplus, not the producer surplus.

Figure 7-6 -Refer to Figure 7-6.If the Price of the Good Is