(Figure: Producer Surplus and Mystery Books) Consider the figure Producer Surplus and Mystery Books. When the price of a book is $45, the total producer surplus is _____.

A)$40
B)$60
C)$100
D)$85

Question

(Figure: Producer Surplus and Mystery Books) Consider the figure Producer Surplus and Mystery Books. When the price of a book is $45, the total producer surplus is _____.
​
 ​
A)$40 
B)$60 
C)$100 
D)$85

Quizplus · Accepted Answer

At a price of $45, the producer surplus is equal to the area above the supply curve and below the price line, which is a triangle with base 9 (500-491) and height 22 (45-23), so (1/2) x 9 x 22 = $99. Therefore, the total producer surplus is approximately $100.

(Figure: Producer Surplus and Mystery Books) Consider the Figure Producer