Table 7-9

$$\begin{array} { | c | c | }
\hline \text { Seller } & \begin{array} { c }
\text { Opportunity Cost for } \
\text { Providing 10 Piano Lessons } \
\text { (Dollars) }
\end{array} \
\hline \text { Marcia } & 200 \
\hline \text { Jan } & 250 \
\hline \text { Cindy } & 350 \
\hline \text { Greg } & 400 \
\hline \text { Peter } & 700 \
\hline \text { Bobby } & 800 \
\hline
\end{array}$$
-Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?
A)$0
B)$300
C)$400
D)$700

Question

Table 7-9
​
​
 $$\begin{array} { | c | c | } 
\hline \text { Seller } & \begin{array} { c } 
\text { Opportunity Cost for } \
\text { Providing 10 Piano Lessons } \
\text { (Dollars) }
\end{array} \
\hline \text { Marcia } & 200 \
\hline \text { Jan } & 250 \
\hline \text { Cindy } & 350 \
\hline \text { Greg } & 400 \
\hline \text { Peter } & 700 \
\hline \text { Bobby } & 800 \
\hline
\end{array}$$ ​
-Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?
A)$0
B)$300
C)$400
D)$700

Quizplus · Accepted Answer

The equilibrium market price is $400, which is equal to the opportunity cost of providing 10 piano lessons for Greg. Therefore, Greg is the marginal supplier, and the total producer surplus is the area below the supply curve and above the equilibrium price for Greg, which is $300.

Table 7-9 ​ ​ ​ -Refer to Table 7-9

Table 7-9

-Refer to Table 7-9