5. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer 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 air fryer. PRICE (Dollars per used air fryer) 360 300 240 180 Simone 120 Rajiv 0,30 Maria 60 0 Kevin 2 3 QUANTITY (Used air fryers) Yakov Ana (?) Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ , while Region Y (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 Assuming each seller receives a positive surplus, Rajiv will always receive more producer surplus than Simone. Producer surplus is smaller when the price is $210 than when it is $150. In order for Ana to earn a producer surplus of exactly $90 from selling a used air fryer, the market price must be $

5. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer 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 air fryer. PRICE (Dollars per used air fryer) 360 300 240 180 Simone 120 Rajiv 0,30 Maria 60 0 Kevin 2 3 QUANTITY (Used air fryers) Yakov Ana (?) Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ , while Region Y (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 Assuming each seller receives a positive surplus, Rajiv will always receive more producer surplus than Simone. Producer surplus is smaller when the price is $210 than when it is $150. In order for Ana to earn a producer surplus of exactly $90 from selling a used air fryer, the market price must be $

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...

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