Using the data from Figure 3 determine the producer surplus and complete the table. ProducerCumulative Total SurplusProducers SurplusAcceptable Minimum Pricea b c e f g h **Figure 3: Supply-Demand Graph Showing That Price Excludes Only Buyers and Sellers Who Care the Least**This graph depicts the interaction of supply and demand in a market, illustrating how prices affect the exclusion of buyers and sellers. Below is a detailed explanation of the graph components:1. **Axes:** - **Y-Axis (Vertical):** Represents Price in dollars, ranging from $10 to $70. - **X-Axis (Horizontal):** Represents Quantity in thousands, ranging from 0 to 8.2. **Curves:** - **Demand Curve (Line D):** Slopes downward from left to right, showing an inverse relationship between price and quantity demanded. Key points labeled on this curve include D, A, B, C, E, and F. - **Supply Curve (Line S):** Slopes upward from left to right, indicating a direct relationship between price and quantity supplied. Key points labeled on this curve include S, h, g, f, e, and a. - **Shifted Supply Curve (Line S'):** Parallel to the original supply curve, shifted to the right, with points labeled S', F, and G, indicating an increase in supply.3. **Intersection Points:** - **Point E:** The intersection of the original supply and demand curves, representing the initial equilibrium where quantity supplied equals quantity demanded. - **Point F:** The intersection of the shifted supply curve (S') and the demand curve, showing the new equilibrium after a shift in supply.4. **Price Exclusion Zones:** - The graph illustrates how only buyers and sellers who care the least about price are impacted, as shown by the movement across the supply and demand curves.This graph effectively demonstrates the dynamics of how supply and demand determine market prices and quantities, while also highlighting the effects of shifts in supply.

Producer Surplus-Producer surplus is the total amount that is received by selling the production at…

Answered: Using the data from Figure 3 determine…

Using the data from Figure 3 determine the producer surplus and complete the table. Producer Cumulative Total Surplus Producers Surplus Acceptable Minimum Price a b c e f g h

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Using the data from Figure 3 determine the producer surplus and complete the table.

Producer	Cumulative Total Surplus	Producers Surplus	Acceptable Minimum Price
a
b
c
e
f
g
h

**Figure 3: Supply-Demand Graph Showing That Price Excludes Only Buyers and Sellers Who Care the Least**

This graph depicts the interaction of supply and demand in a market, illustrating how prices affect the exclusion of buyers and sellers. Below is a detailed explanation of the graph components:

1. **Axes:**
- **Y-Axis (Vertical):** Represents Price in dollars, ranging from $10 to $70.
- **X-Axis (Horizontal):** Represents Quantity in thousands, ranging from 0 to 8.

2. **Curves:**
- **Demand Curve (Line D):** Slopes downward from left to right, showing an inverse relationship between price and quantity demanded. Key points labeled on this curve include D, A, B, C, E, and F.
- **Supply Curve (Line S):** Slopes upward from left to right, indicating a direct relationship between price and quantity supplied. Key points labeled on this curve include S, h, g, f, e, and a.
- **Shifted Supply Curve (Line S'):** Parallel to the original supply curve, shifted to the right, with points labeled S', F, and G, indicating an increase in supply.

3. **Intersection Points:**
- **Point E:** The intersection of the original supply and demand curves, representing the initial equilibrium where quantity supplied equals quantity demanded.
- **Point F:** The intersection of the shifted supply curve (S') and the demand curve, showing the new equilibrium after a shift in supply.

4. **Price Exclusion Zones:**
- The graph illustrates how only buyers and sellers who care the least about price are impacted, as shown by the movement across the supply and demand curves.

This graph effectively demonstrates the dynamics of how supply and demand determine market prices and quantities, while also highlighting the effects of shifts in supply.

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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