Figure 5.4. Venezuelan Calculator Market
-Consider Figure 5.4.The increase in Venezuelan producer surplus under the production subsidy totals

Question

Figure 5.4. Venezuelan Calculator Market 
-Consider Figure 5.4.The increase in Venezuelan producer surplus under the production subsidy totals

Quizplus · Accepted Answer

Producer surplus increases by the area of the rectangle formed by the subsidy amount per unit (vertical distance between the supply curves before and after the subsidy) multiplied by the new quantity produced and sold.