Graph 9-8
-According to Graph 9-8, producer surplus after trade would be:
A)$900
B)$1100
C)$1500
D)$2000

Question

Graph 9-8 
-According to Graph 9-8, producer surplus after trade would be:
A)$900 
B)$1100 
C)$1500 
D)$2000

Quizplus · Accepted Answer

Producer surplus after trade is the area above the supply curve and below the world price line. In this case, the world price is $1000, and the supply curve is a straight line with a slope of 1. The area above the supply curve and below the world price line is a triangle with a base of 1000 and a height of 100. Therefore, the area of the triangle is 50000, which is equal to $500.

Graph 9-8 -According to Graph 9-8, Producer Surplus After Trade Would Be