Based on the table below, what is the producer surplus of the 1^st unit sold assuming this market reaches equilibrium? $\begin{array}{lcc}\underline{\text { Price } }&\underline{ \text { Quantity Demanded }} & \underline{\text { Quantity Supplied }} \\\$ 1.00 & 7 & 1 \\\$ 2.00 & 6 & 2 \\\$ 3.00 & 5 & 3 \\\$ 4.00 & 4 & 4 \\\$ 5.00 & 3 & 5 \\\$6.00 & 2 & 6 \\\$ 7.00 & 1 & 7\end{array}$

Question

Based on the table below, what is the producer surplus of the 1^st unit sold assuming this market reaches equilibrium?

\begin{array}{lcc}\underline{\text { Price } }&\underline{ \text { Quantity Demanded }} & \underline{\text { Quantity Supplied }} \\\$ 1.00 & 7 & 1 \\\$ 2.00 & 6 & 2 \\\$ 3.00 & 5 & 3 \\\$ 4.00 & 4 & 4 \\\$ 5.00 & 3 & 5 \\\$6.00 & 2 & 6 \\\$ 7.00 & 1 & 7\end{array}

Quizplus · Accepted Answer

The equilibrium price is $4.00 where quantity demanded equals quantity supplied. The producer surplus for the 1st unit is the difference between the equilibrium price ($4.00) and the minimum price the producer is willing to accept ($1.00), which is $3.00.

Based on the Table Below, What Is the Producer Surplus