Question

If the supply curve is q=2+2p, cid what is the producer surplus if the price is p= 12? Producer surplus (PS) equals (Enter your response as a whole number.)

Answer 1

Given from question-:

Producer Surplus 2 PA 9 →

supply curve- q=2+2p

p = 12

we need to find PS=?

Now,

by putting value of p in the supply curve equation

q = 2 + 2*12

q = 2+24

q = 26

the formula to calculate producer surplus is-

PS = 1/2 * base * height

in our case, base = 26, and height = 12 - 2 = 10, where 2 is a minimum price to produce a unit.

so, PS = 1/2 * 26 * 10

PS = 13 * 10

PS = 130 (Answer)

Answer - Producer Surplus (PS) equals $ 130