Figure 7-9
-Refer to Figure 7-9.If producer surplus is $19,then the price of the good is
A)$11.50.
B)$14.50.
C)$13.50.
D)$9.75.

Question

Figure 7-9 
-Refer to Figure 7-9.If producer surplus is $19,then the price of the good is
A)$11.50. 
B)$14.50. 
C)$13.50. 
D)$9.75.

Quizplus · Accepted Answer

Producer surplus is the difference between the price the producer is willing to accept and the price they receive for the good. In Figure 7-9, producer surplus is the area above the supply curve and below the price. If producer surplus is $19, then the area between the supply curve and the price must be $19. Looking at the graph, this occurs at a price of $13.50. Therefore, the answer is C) $13.50.

Figure 7-9 -Refer to Figure 7-9.If Producer Surplus Is $19,then the Price