The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Park, a university town in Maryland. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $300. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Felix, green (triangle symbols) for Janet, purple (diamond symbols) for Larry, tan (dash symbols) for Megan, and orange (square symbols) for Raphael. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $300. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 480 420 360 300 240 180 120 60 0 0 1 Felix 2 Janet Larry Megan Raphael 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 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 motor scooter decreases to $180. Felix Janet Larry Megan Raphael will sell motor scooters at the given market price, and total
The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Park, a university town in Maryland. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $300. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Felix, green (triangle symbols) for Janet, purple (diamond symbols) for Larry, tan (dash symbols) for Megan, and orange (square symbols) for Raphael. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $300. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 480 420 360 300 240 180 120 60 0 0 1 Felix 2 Janet Larry Megan Raphael 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 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 motor scooter decreases to $180. Felix Janet Larry Megan Raphael will sell motor scooters at the given market price, and total
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. Producer surplus for a group of sellers
The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Park, a university town in
Maryland. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $300.
Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Felix, green (triangle symbols) for Janet, purple
(diamond symbols) for Larry, tan (dash symbols) for Megan, and orange (square symbols) for Raphael. (Note: The name labels are to the right of the
corresponding segment on the supply curve.)
Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $300.
(Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.)
PRICE (Dollars per motor scooter)
480
420
360
300
240
180
120
60
0
0
1
Felix
2
Janet
Larry
Megan
Raphael
3
5
4
QUANTITY (Motor scooters)
Market Price
6
7
8
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 motor scooter decreases to $180.
Felix
Janet
Larry
Megan
Raphael
will sell motor scooters at the given market price, and total
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