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Figure: The Market for Hamburgers
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Montreal,Quebec.If the price of a hamburger is $1 and 200 hamburgers are supplied,producer surplus will equal:
A) $60.
B) $65.
C) $50.
D) $360.

Question

Use the following to answer questions :
Figure: The Market for Hamburgers 
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Montreal,Quebec.If the price of a hamburger is $1 and 200 hamburgers are supplied,producer surplus will equal:
A) $60. 
B) $65. 
C) $50. 
D) $360.

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a producer is willing to sell a good and the price actually received. In this case, if the price is $1 and 200 hamburgers are supplied, the producer surplus is the area above the supply curve and below the price. The height of the supply curve is $1, so the producer surplus is (1/2) * (200) * (1) = $100/2 = $50. Therefore, the correct answer is C.

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