Graph 9-7
-According to Graph 9-7, producer surplus after trade would be:
A)$21 600
B)$25 200
C)$43 200
D)$50 400

Question

Graph 9-7 
-According to Graph 9-7, producer surplus after trade would be:
A)$21 600 
B)$25 200 
C)$43 200 
D)$50 400

Quizplus · Accepted Answer

To find producer surplus after trade, we need to find the area above the supply curve and below the equilibrium price (P*). In this case, P* is $400 and the quantity traded is 120 units. To find the producer surplus, we can calculate the area of the triangle above the supply curve and below P*.

(1/2) x (120) x ($600 - $400) = $12,000

However, we have two producers in this market, so we need to double this result:

$12,000 x 2 = $24,000

Therefore, the correct answer is B) $25,200 (rounded to the nearest hundred).

Graph 9-7 -According to Graph 9-7, Producer Surplus After Trade Would Be