Assume the market price for tangerines is $18.00 per bushel. At the market price, tangerine growers are willing to supply a quantity of 12,000 bushels per week. The quantity supplied drops to zero when the price falls to $5.00 per bushel. Construct a
graph showing this data, calculate the total producer surplus in the market for tangerines, and show the total producer surplus on the graph. Your supply curve should be a straight line.
What will be an ideal response?
The total producer surplus is (1/2 × $13 × 12,000 ) = $78,000.
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Other things remaining the same, ________ in U.S. real GDP results in ________ in U.S. imports
A) an increase; a decrease followed by no change B) an increase; an increase C) a decrease; an increase D) a decrease; no change E) an increase; a decrease
One would speak of a movement along a supply curve for a good, rather than a change in supply, if
A) prices of substitutes in production change. B) supplier expectations about future prices change. C) the price of the good changes. D) the cost of producing the good changes.