6. Producer surplus and price changes

The following graph shows the supply curve for a group of students looking to sell used graphing calculators. Each student has only one used calculator 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 calculator.

? 420 350 Rosa 280 Nick B PRICE (Dollars per used calculator) 210 0 Latasha 140 A Jake Frances 70 Dmitri 1 2 3 5 QUANTITY (Used calculators)Region A (the purple shaded area) represents the total producer surplus when the market price is $ while Region B (the grey shaded area) represents 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 larger when the price is $245 than when it is $175. O O Assuming each student receives a positive surplus, Frances will always receive more producer surplus than Jake. O O In order for Rosa to earn a producer surplus of exactly $70 from selling a used calculator, the market price needs to be $