Figure 7-26
-Refer to Figure 7-26.At the equilibrium price,producer surplus is
A)$600.
B)$900.
C)$1,200.
D)$1,800.

Name: Figure 7-26 -Refer to Figure 7-26.At the equilibrium price,producer surplus is A)$600. B)$900. C)$1,200. D)$1,800.
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Question

Figure 7-26 
-Refer to Figure 7-26.At the equilibrium price,producer surplus is
A)$600. 
B)$900. 
C)$1,200. 
D)$1,800.

Quizplus · Accepted Answer

The equilibrium price is $12 and the equilibrium quantity is 300. At this price, the area below the supply curve but above the equilibrium price (i.e. producer surplus) is equal to 1/2 x ($12 - $6) x 300 = $900. Therefore, the correct answer is B.

Figure 7-26 -Refer to Figure 7-26.At the Equilibrium Price,producer Surplus Is