Table 7-11

$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c }
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 3 & 30 \
\hline 8.00 & 6 & 24 \
\hline 6.00 & 9 & 18 \
\hline 4.00 & 12 & 12 \
\hline 2.00 & 15 & 6 \
\hline 0.00 & 18 & 0 \
\hline
\end{array}$$
-Refer to Table 7-11. Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, producer surplus will be
A)$16.
B)$18.
C)$24.
D)$26.

Question

Table 7-11
​
​
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 3 & 30 \
\hline 8.00 & 6 & 24 \
\hline 6.00 & 9 & 18 \
\hline 4.00 & 12 & 12 \
\hline 2.00 & 15 & 6 \
\hline 0.00 & 18 & 0 \
\hline
\end{array}$$ ​
-Refer to Table 7-11. Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, producer surplus will be
A)$16.
B)$18.
C)$24.
D)$26.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price level up to the quantity sold. At a price of $4, the quantity supplied is 12 units, but only 6 units are sold. The supply price for these 6 units starts at $2 (for the first unit) and increases up to $4 (for the sixth unit). The producer surplus can be calculated as the area of a triangle with a base of 6 units (from 0 to 6 units) and a height of $2 (from $2 to $4). The area of this triangle is 1/2 * base * height = 1/2 * 6 * 2 = $6. Additionally, there's a rectangle representing the surplus from the first 6 units supplied at $2, which is 6 units * $2 = $12. Adding these together gives $6 (triangle area) + $12 (rectangle area) = $18.

Table 7-11 ​ ​ ​ -Refer to Table 7-11

Table 7-11

-Refer to Table 7-11