Let P represent price; let QS represent quantity supplied; and assume the equation of the supply curve is
If 90 units of the good are produced and sold, then producer surplus amounts to $1,350.

Question

Let P represent price; let QS represent quantity supplied; and assume the equation of the supply curve is
  If 90 units of the good are produced and sold, then producer surplus amounts to $1,350.

Quizplus · Accepted Answer

We do not have enough information to determine the exact price and quantity at which the 90 units are sold. However, we know that when 90 units are sold, producer surplus is $1,350. This means that the area above the supply curve and below the price that the producer receives for the 90 units is equal to $1,350. Therefore, it is possible for the given supply curve to generate a producer surplus of $1,350 when 90 units are sold. Hence, the statement is true.

Let P Represent Price; Let QS Represent Quantity Supplied; and Assume