PRet price, indicate this by leaving his or her rectangle in its original position on the palette.) Kevin Brian Crystal Hilary Market Price Edison Edison Crystal Hilary an 3. 6. 7 Kevin QUANTITY (Smartphones) will sell smartphones at the given market price, and total tion on the preceding graph, you can tell that is market will be s
PRet price, indicate this by leaving his or her rectangle in its original position on the palette.) Kevin Brian Crystal Hilary Market Price Edison Edison Crystal Hilary an 3. 6. 7 Kevin QUANTITY (Smartphones) will sell smartphones at the given market price, and total tion on the preceding graph, you can tell that is market will be s
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $175.
(Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
400
350
Kevin
Brian
300
250
Crystal
Hilary
200
Market Price
Edison
150
Edison
100
Crystal
Hilary
50
Brian
1
2
5
6.
7
Kevin
QUANTITY (Smartphones)
will sell smartphones at the given market price, and total
Based on the information on the preceding graph, you can tell that
producer surplus in this market will be $
Suppose the market price of a smartphone increases to $275.
PRICE (Dollars per smartphone)

Transcribed Image Text:On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a
smartphone at the new market price: blue (circle symbols) for Brian, green (triangle symbols) for Crystal, purple (diamond symbols) for Edison, tan
(dash symbols) for Hilary, and orange (square symbols) for Kevin. (Note: If a person will not sell a smartphone at the new market price, indicate this
by leaving his or her rectangle in its original position on the palette.)
400
350
Kevin
Brian
300
Market Price
250
Crystal
Hilary
200
Edison
150
Edison
100
Crystal
Hilary
50
Brian
4
5
6
7
8
Kevin
3
QUANTITY (Smartphones)
Based on the information in the second graph, when the market price of a smartphone increases to $275, the number of sellers willing to sell a
and total producer surplus
to $
to
smartphone
PRICE (Dollars per smartphone)
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