The diagram shows the market for a good with an initial equilibrium price of $10. The demand for the good increases by 40 units at every price causing the equilibrium price to rise to $12. What is the value of the producer surplus after the price increase? 24 price %24 20 12 10 D, 80 100 120 140 quantity O A. $1,440 O B. $1,000 OC. $500 O D. $720
The diagram shows the market for a good with an initial equilibrium price of $10. The demand for the good increases by 40 units at every price causing the equilibrium price to rise to $12. What is the value of the producer surplus after the price increase? 24 price %24 20 12 10 D, 80 100 120 140 quantity O A. $1,440 O B. $1,000 OC. $500 O D. $720
Chapter1: Making Economics Decisions
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![The diagram shows the market for a good with an initial equilibrium price of $10. The demand for the good increases by 40 units at
every price causing the equilibrium price to rise to $12. What is the value of the producer surplus after the price increase?
24
price
20
.S,
12
10
80
100 120 140
quantity
O A. $1,440
O B. $1,000
OC. $500
O D. $720](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0754643e-e120-48e7-b92e-df1e061365ab%2Fe927e916-efe6-4a7f-9c4f-199f18c60000%2Fv7id6wc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The diagram shows the market for a good with an initial equilibrium price of $10. The demand for the good increases by 40 units at
every price causing the equilibrium price to rise to $12. What is the value of the producer surplus after the price increase?
24
price
20
.S,
12
10
80
100 120 140
quantity
O A. $1,440
O B. $1,000
OC. $500
O D. $720
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