0 1 2 QUANTITY (Used tablets) 3 150 100 50 200 250 0 Alex 1 PRICE (Dollars per used tablet) Becky WA m A Clancy m Eileen Hubert Kate H D Region A (the purple shaded area) represents the total producer surplus when the market price is S represents when the market price In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement True False O O Assuming each student receives a positive surplus, Becky will always receive less producer surplus than Clancy. Producer surplus is larger when the price is $175 than when it is $150 O O In order for Eileen to earn a producer surplus of exactly $25 from selling a used tablet, the market price needs to be S 300 → while Region B (the grey shaded area)

0 1 2 QUANTITY (Used tablets) 3 150 100 50 200 250 0 Alex 1 PRICE (Dollars per used tablet) Becky WA m A Clancy m Eileen Hubert Kate H D Region A (the purple shaded area) represents the total producer surplus when the market price is S represents when the market price In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement True False O O Assuming each student receives a positive surplus, Becky will always receive less producer surplus than Clancy. Producer surplus is larger when the price is $175 than when it is $150 O O In order for Eileen to earn a producer surplus of exactly $25 from selling a used tablet, the market price needs to be S 300 → while Region B (the grey shaded area)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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