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Producer surplus and price changes The following graph plots a supply curve ( orange line ) for a group of recent graduates looking to sell
Producer surplus and price changes
The following graph plots a supply curve orange line for a group of recent graduates looking to sell used finance textbooks. Each seller has only a single used textbook available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used textbook.
Region the purple shaded area represents total producer surplus when the market price is equal to while Region 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.
tableStatementAssuming each seller receives a positive surplus, Dmitri will always receive more producer surplus than Frances.Producer surplus is smaller when the price is $ than when it is $
In order for Nick to earn a producer surplus of exactly $ from selling a used textbook, the market price must be
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