1.4. Using the following diagram, identify and calculate total producer surplus if the price of oil is $50 per barrel. Recall that for a triangle, Area = (1 / 2) X Base X Height. (You never thought you'd use that equation unless you became an engineer, did you?)

Price of oil per barrel

$60 40 20 5

Supply of oil L---~----~----~---

20 40 60 Quantity of oil

{MBD)