6. Producer surplus and price changesThe 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 usedair fryer available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing toaccept. 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 +300240180120600O0Kevin00MariaRajivSimoneYakov234QUANTITY (Used air fryers)-5AnaHRegion X (the purple shaded area) represents total producer surplus when the market price is equal to $area) representswhen the market pricewhile Region Y (the grey shadedIn the following table, indicate which statements are true or false based on the information provided on the previous graph.StatementTruepositive surplus, Rajiv will always receive more producer surplus than Simone. OAssuming each seller receivesProducer surplus is smaller when the price is $210 than when it is $150.OIn order for Ana to earn a producer surplus of exactly $90 from selling a used air fryer, the market price must be $FalseOO

Producer surplus is the benefit a seller gets by selling its output at price higher than its minimum…

Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement 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 $ True O O False O O

Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement 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 $ True O O False O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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