Producer surplus for a group of sellersThe following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $90.Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (Note: The name labels are to the right of the corresponding segment on the supply curve.)Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $90. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) Based on the information on the preceding graph, you can tell that will sell smartphones at the given market price, and total producer surplus in this market will be . Suppose the market price of a smartphone decreases to $50.On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a smartphone at the new market price: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (Note: If a person will not sell a smartphone at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.) 160140Jake120TimRosa100LatashaMarket Price80NickNick6040LatashaRosa20Jake1234578TimQUANTITY (Smartphones)Based on the information on the preceding graph, you can tell thatwill sell smartphones at the given market price, and totalproducer surplus in this market will be $Suppose the market price of a smartphone decreases to $50.PRICE (Dollars per smartphone) 160140JakeTim120Rosa100Latasha80NickNick60Market Price40LatashaRosa20Jake13478TimQUANTITY (Smartphones)Based on the information in the second graph, when the market price of a smartphone decreases to $50, the number of sellers willing to sell asmartphonetoand total producer surplusto $PRICE (Dollars per smartphone)

Question

Producer surplus for a group of sellersThe following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $90.Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (Note: The name labels are to the right of the corresponding segment on the supply curve.)Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $90. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) Based on the information on the preceding graph, you can tell that    will sell smartphones at the given market price, and total producer surplus in this market will be . Suppose the market price of a smartphone decreases to $50.On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a smartphone at the new market price: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (Note: If a person will not sell a smartphone at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.) 160140Jake120TimRosa100LatashaMarket Price80NickNick6040LatashaRosa20Jake1234578TimQUANTITY (Smartphones)Based on the information on the preceding graph, you can tell thatwill sell smartphones at the given market price, and totalproducer surplus in this market will be $Suppose the market price of a smartphone decreases to $50.PRICE (Dollars per smartphone) 160140JakeTim120Rosa100Latasha80NickNick60Market Price40LatashaRosa20Jake13478TimQUANTITY (Smartphones)Based on the information in the second graph, when the market price of a smartphone decreases to $50, the number of sellers willing to sell asmartphonetoand total producer surplusto $PRICE (Dollars per smartphone)

Accepted Answer

Producer surplus is a measure of the difference between the price that a producer receives for a…