Answered: Given, the total surplus in the market…

Given, the total surplus in the market is 1680 pounds. You know that the consumer surplus in the market is 1192 pounds. What is the producer surplus in the market?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.3: The Market: Putting Supply And Demand Together

Problem 5ST

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Question

a) Given, the total surplus in the market is 1680 pounds. You know that the consumer surplus in the market is 1192 pounds. What is the producer surplus in the market?

b) Given, the market price is 15 pounds. Assuming an equal distribution of Tax burden, after a tax regulation of 20 pounds, what would be the price per unit sold received by the sellers?

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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