Answered: 20 Supply 16 16 8. 6.5 4 2. 3 4 5.…

20 Supply 16 16 8. 6.5 4 2. 3 4 5. QUANTITY Refer to Figure 7-3. If the price of the good is $12.00, then producer surplus is a. S14.00. b. $3.00. c. $13.00, d. S14.50. PRICE

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 11SCQ: If a price floor benefits producers, why does a price floor reduce social surplus?

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Question

Figure 7-3
20
Supply
16
15
6.5
1.
2.
3
5.
QUANTITY
Refer to Figure 7-3. If the price of the good is $12.00, then producer surplus is
a. S14.00.
b. $3.00.
c. $13.00.
d. $14,50.
PRICE
4.

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