4. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used air fryer. PRICE (Dollars per used air fryer) 180 150 120 90 8 0 0 D Manuel Statement 00 U хо Poornima Shen Valerie D D O Antonio 2 3 4 QUANTITY (Used air fryers) 0 Caroline ? Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. True Producer surplus is larger when the price is $105 than when it is $75. Assuming each seller receives a positive surplus, Poornima will always receive more producer surplus than Shen. In order for Caroline to earn a producer surplus of exactly $45 from selling a used air fryer, the market price must be s False O

4. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used air fryer. PRICE (Dollars per used air fryer) 180 150 120 90 8 0 0 D Manuel Statement 00 U хо Poornima Shen Valerie D D O Antonio 2 3 4 QUANTITY (Used air fryers) 0 Caroline ? Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. True Producer surplus is larger when the price is $105 than when it is $75. Assuming each seller receives a positive surplus, Poornima will always receive more producer surplus than Shen. In order for Caroline to earn a producer surplus of exactly $45 from selling a used air fryer, the market price must be s False O

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...

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