Producer surplus for a group of sellersThe following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $90.Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (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 smartphone at a market price of $90. (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.) Based on the information on the preceding graph, you can tell that will sell smartphones at the given market price, and total producer surplus in this market will be . Suppose the market price of a smartphone decreases to $50.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 Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (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.) The graph represents the supply decision of different sellers at various prices for smartphones. The x-axis shows the quantity of smartphones, ranging from 0 to 8 units. The y-axis represents the price in dollars per smartphone, ranging from $0 to $160.Here is a breakdown of the data visually represented:- **Jake** (Blue line): Offers 1 smartphone at $20.- **Latasha** (Green line): Offers 1 smartphone at $40.- **Nick** (Purple line): Offers 1 smartphone at $80.- **Rosa** (Brown line): Offers 1 smartphone at $100.- **Tim** (Orange line): Offers 1 smartphone at $160.The market price is represented by a black horizontal line at $100. Sellers below this price will sell their smartphones, as they are willing to accept this market price.**Legend:** - Jake's data is marked with circles in blue.- Latasha's data is marked with triangles in green.- Nick's data is marked with diamonds in purple.- Rosa’s data is marked with squares in brown.- Tim's data is marked with squares in orange. **Instructions:**Based on the graph, sellers who are willing to sell at the market price ($100) are identified, and the total producer surplus can be calculated. Additionally, it prompts to consider what occurs if the market price decreases to $50. ### Graph Explanation: Producer Supply Curve The graph displays a producer supply curve, showing the relationship between the price of smartphones (in dollars per smartphone) and the quantity supplied. It includes the individual supply curves for five sellers: Jake, Latasha, Nick, Rosa, and Tim.#### Graph Details:- **X-Axis:** Quantity (Smartphones) ranging from 0 to 8.- **Y-Axis:** Price (Dollars per smartphone) ranging from $0 to $160. #### Individual Supply Curves:- **Jake:** Begins at $10 for 1 smartphone.- **Latasha:** Begins at $40 for 2 smartphones.- **Nick:** Begins at $70 for 3 smartphones.- **Rosa:** Begins at $100 for 4 smartphones.- **Tim:** Begins at $130 for 5 smartphones.The supply curve is represented by an orange step-like line. Each step corresponds to the lowest price at which each successive seller is willing to enter the market.#### Market Price:A horizontal black line labeled "Market Price" is drawn at $60, indicating the prevailing market price.### Interactive Component:- **Prompt:** Based on the information in the graph, when the market price of a smartphone decreases to $50, fill in how many sellers remain willing to sell and calculate the total producer surplus.This graph helps visualize how changes in market price impact the number of sellers willing to participate in the market and their producer surplus.

Producer surplus is a measure of the difference between the price that a producer receives for a…

Answered: The following graph shows the supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Producer surplus for a group of sellers

The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $90.

Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (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 smartphone at a market price of $90. (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.)

Based on the information on the preceding graph, you can tell that will sell smartphones at the given market price, and total producer surplus in this market will be

Suppose the market price of a smartphone decreases to $50.

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 Jake, green (triangle symbols) for Latasha, purple (diamond symbols) for Nick, tan (dash symbols) for Rosa, and orange (square symbols) for Tim. (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.)

The graph represents the supply decision of different sellers at various prices for smartphones. The x-axis shows the quantity of smartphones, ranging from 0 to 8 units. The y-axis represents the price in dollars per smartphone, ranging from $0 to $160.

Here is a breakdown of the data visually represented:

- **Jake** (Blue line): Offers 1 smartphone at $20.
- **Latasha** (Green line): Offers 1 smartphone at $40.
- **Nick** (Purple line): Offers 1 smartphone at $80.
- **Rosa** (Brown line): Offers 1 smartphone at $100.
- **Tim** (Orange line): Offers 1 smartphone at $160.

The market price is represented by a black horizontal line at $100. Sellers below this price will sell their smartphones, as they are willing to accept this market price.

**Legend:**
- Jake's data is marked with circles in blue.
- Latasha's data is marked with triangles in green.
- Nick's data is marked with diamonds in purple.
- Rosa’s data is marked with squares in brown.
- Tim's data is marked with squares in orange.

**Instructions:**

Based on the graph, sellers who are willing to sell at the market price ($100) are identified, and the total producer surplus can be calculated. Additionally, it prompts to consider what occurs if the market price decreases to $50.

### Graph Explanation: Producer Supply Curve

The graph displays a producer supply curve, showing the relationship between the price of smartphones (in dollars per smartphone) and the quantity supplied. It includes the individual supply curves for five sellers: Jake, Latasha, Nick, Rosa, and Tim.

#### Graph Details:
- **X-Axis:** Quantity (Smartphones) ranging from 0 to 8.
- **Y-Axis:** Price (Dollars per smartphone) ranging from $0 to $160.

#### Individual Supply Curves:
- **Jake:** Begins at $10 for 1 smartphone.
- **Latasha:** Begins at $40 for 2 smartphones.
- **Nick:** Begins at $70 for 3 smartphones.
- **Rosa:** Begins at $100 for 4 smartphones.
- **Tim:** Begins at $130 for 5 smartphones.

The supply curve is represented by an orange step-like line. Each step corresponds to the lowest price at which each successive seller is willing to enter the market.

#### Market Price:
A horizontal black line labeled "Market Price" is drawn at $60, indicating the prevailing market price.

### Interactive Component:
- **Prompt:** Based on the information in the graph, when the market price of a smartphone decreases to $50, fill in how many sellers remain willing to sell and calculate the total producer surplus.

This graph helps visualize how changes in market price impact the number of sellers willing to participate in the market and their producer surplus.

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