Price300275 +250225200175 +150+-125 +10075+5025SD25 50 75 100 125 150 175 200 QuantityD'Show Transcribed TextC. $2,185d. $625If the supply curve is S and thedemand curve shifts from D to D',What will be the increase in theproducer surplus due to newproducers entering the market?a. $5,625b. $1,500

Producer surplus is the difference between the maximum amount which a producer is willing to accept…

Answered: If the supply curve is S and the demand…

If the supply curve is S and the demand curve shifts from D to D', What will be the increase in the producer surplus due to new producers entering the market? a. $5,625 b. $1,500 C. $2,185 d. $625

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

Price
300
275 +
250
225
200
175 +
150+-
125 +
100
75+
50
25
S
D
25 50 75 100 125 150 175 200 Quantity
D'
Show Transcribed Text
C. $2,185
d. $625
If the supply curve is S and the
demand curve shifts from D to D',
What will be the increase in the
producer surplus due to new
producers entering the market?
a. $5,625
b. $1,500

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Step 1: Define producer surplus

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Step 2: Original producer surplus

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Step 3: New and the changed producer surplus

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