Figure 7-13
-Refer to Figure 7-13.If the equilibrium price rises from $60 to $120,what is the producer surplus to new producers in the market?
A)$1,200
B)$2,400
C)$3,600
D)$4,800

Question

Figure 7-13 
-Refer to Figure 7-13.If the equilibrium price rises from $60 to $120,what is the producer surplus to new producers in the market?
A)$1,200 
B)$2,400 
C)$3,600 
D)$4,800

Quizplus · Accepted Answer

The producer surplus to new producers is the area of the triangle formed between the new supply curve and the price increase from $60 to $120. The base of this triangle is the quantity supplied by new producers, and the height is the price increase ($120 - $60 = $60). The area of the triangle is 0.5 * base * height, which equals $2,400.

Figure 7-13 -Refer to Figure 7-13.If the Equilibrium Price Rises from $60