Figure 8 shows a supply curve for a commodity. It gives the relationship between the selling price of the  commodity and the quantity that producers will manufacture. At a higher selling price, a greater quantity will be produced. Therefore,  the curve is increasing. If (A, B) is a point on the curve,  then, to stimulate the production of A units of the commodity, the  price per unit must be B dollars. Of course, some producers will  be willing to produce the commodity even with a lower selling  price. Since everyone receives the same price in an open efficient  economy, most producers are receiving more than their  minimal required price. The excess is called the producers’ surplus. Using an argument analogous to that of the consumers’  surplus, we can show that the total producers’ surplus when the  price is B is the area of the shaded region in Fig. 8. Find the producers’  surplus for each of the following supply curves at the  given sales level, x.

p = .01x + 3; x = 200

Price p = g(x) (A, B) 0 Figure 8 Producers' surplus. Quantity X