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QUESTION 5

In the following figure, which area represents producer surplus?  
Supply Area A Area B Area C Demand 631

a. Area C
b. Area A
c. Area B

1 points   

QUESTION 6

Which of the following represents producer surplus?  
In this graph, the y-axis is Price and the x-axis is quantity. There are two curving lines representing supply and demand. The supply curve curves up as it goes right, while the demand curves curves down as it goes right. The point where these two lines intersect is Equilibrium. There is a horizontal dotted line going from the equilibrium point to the y-axis, and this line represents Market price. The region above the market price line and below the demand curve is labeled A. The region below the market price line and above the supply curve is labeled B. There is also a vertical dotted line extending from the equilibrium point to the x-axis, and this line represents equilibrium quantity.

a. B+A
b. B
c. A

1 points   

QUESTION 7

Refer to the figure below. Producer surplus is:  
In this graph, the y-axis represents price and the x-axis represents quantity. There are two lines, S1 and D1. S1 starts at (0,2) and has an upward slope. D1 starts at approximately (0,16) and has a downward slope. The two lines cross at the point (31,14).

a. $180
b. $60
c. $420

1 points   

QUESTION 8

Social surplus is ________.

a. the sum of consumer surplus and producer surplus
b. consumer surplus minus producer surplus
c. producer surplus minus consumer surplus
business   economics   
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Homework Answers

Answer #1

1.
The answer is a.Area C
The area under the price and over the supply curve is the producer surplus.
2.
The answer is b.B
The area under the price and over the supply curve is the producer surplus.
3.
The answer is a.$180
Producer surplus=0.5*(14-2)*(30)=180
4.
a.the sum of consumer surplus and producer surplus
Social surplus is the sum of consumer surplus and producer surplus.

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