The following graph shows the supply curve for a group of students looking to sell used DVD players. Each student has only one used DVD player to sell, Each rectangular segment under the supply curve represents the cost, or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used DVD player. 360 T 300 240 Megan Larry 180 Janet Felix 120 Deborah 60 O Carlos QUANTITY (Used DVD players) Region A (the purple shaded area) represents the total producer surplus when the market price is $ , while region B (the grey shaded area) represents when the market price Complete the following table by indicating which statements are true or false based on the information provided on the previous graph. Statement True False Producer surplus is larger when the price is $210 versus when it is $180. Assuming each student receives a positive surplus, Felix will always receive more producer surplus than Janet. There are fewer people selling used DVD players when the market price is $210 than when it is $180. In order for Janet to earn a producer surplus of exactly $30 from selling a used DVD player, the market price needs to be S PRICE (Doll ars per used DVD pla yer)
The following graph shows the supply curve for a group of students looking to sell used DVD players. Each student has only one used DVD player to sell, Each rectangular segment under the supply curve represents the cost, or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used DVD player. 360 T 300 240 Megan Larry 180 Janet Felix 120 Deborah 60 O Carlos QUANTITY (Used DVD players) Region A (the purple shaded area) represents the total producer surplus when the market price is $ , while region B (the grey shaded area) represents when the market price Complete the following table by indicating which statements are true or false based on the information provided on the previous graph. Statement True False Producer surplus is larger when the price is $210 versus when it is $180. Assuming each student receives a positive surplus, Felix will always receive more producer surplus than Janet. There are fewer people selling used DVD players when the market price is $210 than when it is $180. In order for Janet to earn a producer surplus of exactly $30 from selling a used DVD player, the market price needs to be S PRICE (Doll ars per used DVD pla yer)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Pls answer the highlighted blanks and the choices for thr labelled blnks are Choices: 1. The change in total producer surplus , the total producer surplus
2. Is $180, is $210, changes from $270 to $210, changes from $180 to $210
Transcribed Image Text:The following graph shows the supply curve for a group of students looking to sell used DVD players. Each student has only one used DVD player to
sell. Each rectangular segment under the supply curve represents the cost, or minimum acceptable price, for one student. Assume that anyone who
has a cost just equal to the market price is willing to sell his or her used DVD player.
360 T
300
240
Megan
Larry
180
Janet
A.
Felix
120
Deborah
Carlos
QUANTITY (Used DVD players)
Region A (the purple shaded area) represents the total producer surplus when the market price is S
, while region B (the grey shaded area)
represents
when the market price
Complete the following table by indicating which statements are true or false based on the information provided on the previous graph.
Statement
True
False
Producer surplus is larger when the price is $210 versus when it is $180.
Assuming each student receives a positive surplus, Felix will always receive more producer surplus than Janet.
There are fewer people selling used DVD players when the market price is $210 than when it is $180.
In order for Janet to earn a producer surplus of exactly $30 from selling a used DVD player, the market price needs to be S
PRICE (Dollars per used DVD player)
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