PRICE 200 150 100 50 25 50 75 QUANTITY D D' 100 125 150 Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus? a. Producer surplus increases by $3.125

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section7.2: Producer Surplus
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Figure 7-5
PRICE
300
250
200
150
100
50
25
50
in
75
QUANTITY
D
10
S
D'
100 125 150
Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus?
a. Producer surplus increases by $3,125
b. Producer surplus increases by $5,625
c. Producer surplus decreases by $5,625
d. Producer surplus decreases by $3,125
Transcribed Image Text:Figure 7-5 PRICE 300 250 200 150 100 50 25 50 in 75 QUANTITY D 10 S D' 100 125 150 Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus? a. Producer surplus increases by $3,125 b. Producer surplus increases by $5,625 c. Producer surplus decreases by $5,625 d. Producer surplus decreases by $3,125
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