Exam 7: Consumers Producers and the Efficiency of Markets: Producer Surplus

At Nick's Bakery,the cost to make homemade chocolate cake is $4 per cake.As a result of selling five cakes,Nick experiences a producer surplus in the amount of $17.50.Nick must be selling his cakes for

Figure 7-14 -Refer to Figure 7-14.If the market price increases to $130 due to an increase in demand,then producer surplus is

Figure 7-16 -Refer to Figure 7-16.If the price of the good is $600,then

Figure 7-14 -Refer to Figure 7-14.At the equilibrium price,producer surplus is

Figure 7-12 -Refer to Figure 7-12.If the equilibrium price rises from $200 to $350,what is the additional producer surplus to initial producers?

Figure 7-15 -Refer to Figure 7-15.When the price rises from P1 to P2,what area represents the increase in producer surplus?

Caroline sharpens knives in her spare time for extra income.Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen.On a particular day,she is willing to sharpen the first knife for $2.00,the second knife for $2.25,the third knife for $2.75,and the fourth knife for $3.50.Assume Caroline is rational in deciding how many knives to sharpen.Her producer surplus is

Figure 7-10 -Refer to Figure 7-10.When the price rises from P1 to P2,which area represents the increase in producer surplus to existing producers?

Donald produces nails at a cost of $200 per ton.If he sells the nails for $350 per ton,his producer surplus per ton is

The marginal seller is the seller who

Figure 7-12 -Refer to Figure 7-12.If the equilibrium price is $200,what is the producer surplus?

Figure 7-11 -Refer to Figure 7-11.If the supply curve is S and the demand curve shifts from D to D',what is the increase in producer surplus to existing producers?

Figure 7-15 -Refer to Figure 7-15.Area B represents

Donald produces nails at a cost of $350 per ton.If he sells the nails for $500 per ton,his producer surplus is

Figure 7-12 -Refer to Figure 7-12.If the equilibrium price rises from $200 to $350,what is the producer surplus to new producers?

Which of the following will cause a decrease in producer surplus?

Figure 7-12 -Refer to Figure 7-12.If the equilibrium price is $350,what is the producer surplus?

Figure 7-13 -Refer to Figure 7-13.If the equilibrium price rises from $60 to $120,what is the additional producer surplus to initial producers in the market?

George produces cupcakes.His production cost is $10 per dozen.He sells the cupcakes for $16 per dozen.His producer surplus per dozen cupcakes is

Figure 7-11 -Refer to Figure 7-11.If the supply curve is S and the demand curve shifts from D to D',what is the increase in producer surplus due to new producers entering the market?