Question: Let's say there are three hardware stores that sell hammers and there is only one model of hammer on the market. House Depot is a

Let's say there are three hardware stores that sell hammers and there is only one model of hammer on the market. House Depot is a huge big box retailer and can offer this hammer on the market for a minimum price of $7. Lace Hardware is a franchise that sells the hammer for a minimum price of $14. Local hardware store Bob's Hardware is an independent dealer and can offer the hammers for a minimum price of $18. Under this scenario, if the market price of hammers increased from $9 to $16, the total producer surplus would be :

23$

11$

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