Figure 5.5 Figure 5.5 shows the market for apartments in Springfield.Recently, the government imposed a rent ceiling of $1000 per month.
-Refer to Figure 5.5.The value of producer surplus after the imposition of the ceiling is

Question

Figure 5.5  Figure 5.5 shows the market for apartments in Springfield.Recently, the government imposed a rent ceiling of $1000 per month.
-Refer to Figure 5.5.The value of producer surplus after the imposition of the ceiling is

Quizplus · Accepted Answer

Producer surplus after the imposition of a price ceiling is the area above the supply curve but below the price ceiling, up to the quantity traded. Without seeing Figure 5.5, the correct answer is based on the assumption that $40,000 is the calculated area representing this surplus.

Figure 55 Figure 5