Question

username and passw. X TSU Password Reset /launchpad/item/module_krugmanwellsmicrobe_07/krugmanwellsmicro5e_lc_4?mode=Preview tudy Plan Score: 282/450 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If the price of tutoring is $10 per hour, total producer surplus is, in numerals, S. Your answer: Need help on this question? Read the ebook page on this topic Get a hint (fewer points) Show answer (no points) (no penalty

Answer 1

Producer surplus is the area between the price line and the supply line. The price is $10 and the area is represented by the triangle formed between priceline of $10 and the supply curve

Total producer surplus = 0.5*(10-2.5)*300 = 1125

The answer in the box is $1125