D. Prouucer surpiuS Tor a group o sellersThe following graph shows the supply curve for a group of sellers in the U.S. market for laptops (orange line). Each seller has only one laptop to sell.The market price of a laptop 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 Andrew, green (triangle symbols) for Beth,purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to theright 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 laptop at a market price of $90. (Note: Ifa person will not sell a laptop at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)160140Andrew120JacquesEleanor100BethMarket Price80DarnellDarnell6040BethEleanor20AndrewJacquesQUANTITY (Laptops)Based on the information on the preceding graph, you can tell thatwill sell laptops at the given market price, and total producersurplus in this market will be sPRICE (Dollars per laptop) Suppose the market price of a laptop decreases$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 laptopat the new market price: blue (circle symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dashsymbols) for Eleanor, and orange (square symbols) for Jacques. (Note: If a person will not sell a laptop at the new market price, indicate this byleaving his or her rectangle in its original position on the palette.)160140AndrewJacques120Eleanor100BethDarnellDarnell60Market Price40BethEleanor20AndrewJacquesQUANTITY (Laptops)Based on the information in the second graph, when the market price of a laptop decreases to $50, the number of sellers willing to sell a laptopto, and total producer surplusto SPRICE (Dollars per laptop)

Producer surplus is the difference between the actual price received by the producer and the minimum…

Answered: The The following graph shows the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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#51
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