Figure 9-13
-Refer to Figure 9-13.Producer surplus before trade is
A)$3,600.
B)$4,400.
C)$5,200.
D)$6,600.

Question

Figure 9-13 
-Refer to Figure 9-13.Producer surplus before trade is
A)$3,600. 
B)$4,400. 
C)$5,200. 
D)$6,600.

Quizplus · Accepted Answer

Producer surplus before trade is the difference between the price at which producers are willing to sell a good and the actual market price. In this case, before trade, the producers are willing to sell 300 units of the good at a price of $23 each, which means their total surplus is:
($23 - $12) x 300 = $3,600. So, the correct answer is A) $3,600.

Figure 9-13 -Refer to Figure 9-13.Producer Surplus Before Trade Is