The following graph shows the supply curve for a group of students looking to sell used smartphones. 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. 180 1 150 Kate 120 Hubert %2: Eileen A Clancy Becky 30 O Alex 1 2 3 4 6 QUANTITY (Used smartphones) Region A (the purple shaded area) represents the total producer surplus when the market price is $ while Region B (the grey shaded area) represents v 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 Producer surplus is smaller when the price is $105 than when it is $90. Assuming each student receives a positive surplus, Becky will always receive more producer surplus than Clancy. In order for Eileen to earn a producer surplus of exactly $15 from selling a used smartphone, the market price needs to be PRICE (Dollars per used smartphone)

The following graph shows the supply curve for a group of students looking to sell used smartphones. 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. 180 1 150 Kate 120 Hubert %2: Eileen A Clancy Becky 30 O Alex 1 2 3 4 6 QUANTITY (Used smartphones) Region A (the purple shaded area) represents the total producer surplus when the market price is $ while Region B (the grey shaded area) represents v 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 Producer surplus is smaller when the price is $105 than when it is $90. Assuming each student receives a positive surplus, Becky will always receive more producer surplus than Clancy. In order for Eileen to earn a producer surplus of exactly $15 from selling a used smartphone, the market price needs to be PRICE (Dollars per used smartphone)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 10PA: A friend of yours is considering two cell phone service providers. Provider A charges 120 per month...

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