The following graph shows the supply curve for a group of sellers in the U.S. market for
Question:
The following graph shows the supply curve for a group of sellers in the U.S. market for tablets (orange line). Each seller has only one tablet to sell. The market price of a tablet is shown by the black horizontal line at $175.
Each rectangle you can place on the following graph corresponds to a particular seller in this market: blue (circle symbols) for Lorenzo, green (triangle symbols) for Neha, purple (diamond symbols) for Sam, tan (dash symbols) for Teresa, and orange (square symbols) for Andrew. Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a tablet at a market price of $175. (Note: If a person will not sell a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
Based on the information on the preceding graph, you can tell that {one seller, two seller, three seller, four seller, 5 seller} will sell tablets at the given market price, and total producer surplus in this market will be.
Suppose the market price of a tablet increases to $275.
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 tablet at the new market price: blue (circle symbols) for Lorenzo, green (triangle symbols) for Neha, purple (diamond symbols) for Sam, tan (dash symbols) for Teresa, and orange (square symbols) for Andrew. (If a person will not sell a tablet at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.)
Based on the information in the second graph, when the market price of a tablet increases to $275, the number of sellers willing to sell a tablet {decreases, increases} to {one seller, two seller, three seller, four seller, 5 seller , and total producer surplus {decreases, increases} to.
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn