Figure 7-17
-Refer to Figure 7-17.If the supply curve is S and the demand curve is D,what is total producer surplus at the equilibrium price?
A)$202.50
B)$405
C)$810
D)$1,215

Question

Figure 7-17 
-Refer to Figure 7-17.If the supply curve is S and the demand curve is D,what is total producer surplus at the equilibrium price?
A)$202.50 
B)$405 
C)$810 
D)$1,215

Quizplus · Accepted Answer

At equilibrium, the price is $15 and the quantity produced and consumed is 27 units. The total producer surplus is the area above the supply curve and below the equilibrium price. This can be calculated as:

(1/2) x (15-5) x 27 = $405

Therefore, the correct answer is B) $405.

Figure 7-17 -Refer to Figure 7-17.If the Supply Curve Is S and Is