Assume the minimum price needed for a producer to sell a good is $7, and the maximum price a buyer is willing to pay for the good is $13. If the good sells for $11, what is producer surplus? What is consumer surplus?

Assume the minimum price needed for a producer to sell a good is $7, and the maximum price a buyer is willing to pay for the good is $13. If the good sells for $11, what is producer surplus? What is consumer surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Assume the minimum price needed for a producer to sell a good is $7,
and the maximum price a buyer is willing to pay for the good is $13. If
the good sells for $11, what is producer surplus? What is consumer
surplus?
4. On the graph below, determine the areas of consumer surplus and

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