Homework Help is Here – Start Your Trial Now!
Business
Economics
The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and total surplus is $650, what is the producer surplus in the tomato market and why?* The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500, because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650 , because producer surplus and total surplus are always

The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and total surplus is $650, what is the producer surplus in the tomato market and why?* The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500, because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650 , because producer surplus and total surplus are always

Essentials of Economics (MindTap Course List)
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 5PA
See similar textbooks
icon
Related questions
Question
The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $40o and total surplus is $650, what is the producer surplus in the tomato market and why? * The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500 , because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650, because producer surplus and total surplus are always equal.
Transcribed Image Text:The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $40o and total surplus is $650, what is the producer surplus in the tomato market and why? * The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500 , because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650, because producer surplus and total surplus are always equal.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Total Surplus
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
SEE MORE TEXTBOOKS