present cost just equal to the market price is willing to sell his or her used smartphone. Rina Musashi Kyako AD Jacques Eleanar Damel QUANTITY (Ued manphones) nA (the purple shaded area) represents the total producer surplus when the market price is s while Region B ( fauoudueun Dosn ad son) H
present cost just equal to the market price is willing to sell his or her used smartphone. Rina Musashi Kyako AD Jacques Eleanar Damel QUANTITY (Ued manphones) nA (the purple shaded area) represents the total producer surplus when the market price is s while Region B ( fauoudueun Dosn ad son) H
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 9PA
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Question
Chapter 10. 6. Achieving lower pollution
Transcribed Image Text:6. Producer surplus and price changes
The following graph shows the supply curve for a group of students looking to sell used smartphanes. Each student has only one used smartphone to
sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who
has a cost just equal to the market price is willing to sell his or her used smartphone.
200
290
Rina
200
Musashi
190
Kyoko
100
sanboer
Eleanor
50
Damel
1
QUANTITY (LSed smarnphones)
Region A (the purple shaded area) represents the total producer surplus when the market price is
while Region B (the grey shaded area)
represents
when the market price
In the following table, indicate which statements are true or false based on the information provided on the prewous graph.
Statement
False
True
Assuming each student receives a positive surplus, Eleanor will always receive more producer surplus than Jacques.
Producer surplus is larger when the price is $175 than when it is $125.
In order for Musashi to earm a producer surplus of exactly $50 from selling a used smartphone, the market price needs to be
(auoudueus pasn ad seon) Hd
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