Q)Using this diagram calculate :1) The producer surplus after change2) The total surplus after the changeExplains it correctly Prica/gollo ↑Gasoline Market$ 8.00Supply- New*5.50Supply-original$4.003 3.00$2.001.50Oemand175275 350Quantitymillions of gallonsper day

The amount that a producer gains from selling over the price at which they would otherwise be…

Answered: Using this diagram calculate : 1) The…

Using this diagram calculate : 1) The producer surplus after change 2) The total surplus after the change Explains it correctly

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q)Using this diagram calculate :

1) The producer surplus after change

2) The total surplus after the change

Explains it correctly

Prica/gollo ↑
Gasoline Market
$ 8.00
Supply- New
*5.50
Supply-original
$4.00
3 3.00
$2.00
1.50
Oemand
175
275 350
Quantity
millions of gallons
per day

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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