Figure 7-12
-Refer to Figure 7-12.If the equilibrium price rises from $200 to $350,what is the additional producer surplus to initial producers?
A)$15,000
B)$3,750
C)$7,500
D)$30,000

Question

Figure 7-12 
-Refer to Figure 7-12.If the equilibrium price rises from $200 to $350,what is the additional producer surplus to initial producers?
A)$15,000 
B)$3,750 
C)$7,500 
D)$30,000

Quizplus · Accepted Answer

The additional producer surplus is the area of the triangle formed by the new equilibrium price and the initial supply curve. This triangle has a base of 50 units and a height of $150, so its area is 50 * 150 / 2 = $3,750.

Figure 7-12 -Refer to Figure 7-12.If the Equilibrium Price Rises from $200