Figure 7-11
-Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus due to new producers
A) $625
B) $2,500
C) $3,125
D) $5,625

Question

Figure 7-11 
-Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus due to new producers
A) $625 
B) $2,500 
C) $3,125 
D) $5,625

Quizplus · Accepted Answer

The increase in producer surplus due to new producers is represented by the area of the triangle formed between the original supply curve S and the new demand curve D'. The area of this triangle is $625.

Figure 7-11 -Refer to Figure 7-11. If the Supply Curve Is S