Economics

Question 2: (20 marks) Suppose that a product supplier's supply curve (not the market demand curve) for the product is as follows: At $20, the supplier will supply 1 unit; at$30, they will supply 2 units; at $40, they will supply 3 units; at $50, they will supply 4 units; at $60, they will supply 5 units. Required: (a) If the price of the product is $40, draw the equilibrium, and show but don't calculate the producer surplus ( not the consumer surplus) (b) If the price of the product rises from $40 to $50, (i) draw the new equilibrium , and (ii) is the producer surplus higher or lower or the same if the price of the product rises to $50 ( no calculation is required)