Figure 9-12
-Refer to Figure 9-12.Producer surplus before trade is

Name: Figure 9-12 -Refer to Figure 9-12.Producer surplus before trade is
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Figure 9-12 
-Refer to Figure 9-12.Producer surplus before trade is

Quizplus · Accepted Answer

Producer surplus before trade is the area above the supply curve and below the original equilibrium price, which is $6, and between the quantity supplied of 300 and the x-axis. Thus, producer surplus before trade is the triangle with base 300 and height (6 - 2) = 4, which is equal to (1/2) x 300 x 4 = $600 x 6 = $3,600.

Figure 9-12 -Refer to Figure 9-12.Producer Surplus Before Trade Is