Question

6. Producer surplus for a group of sellers Aa Aa E The following graph shows the supply curve for a group of sellers in the U.S. market for DVD players. Each seller has only one DVD player to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one seller. The market price of a DVD player is $175, as shown by the black horizontal line. Each rectangle on the following graph corresponds to a particular seller in this market: blue (circle symbols) for Eric, green (triangle symbols) for Diego, red (cross symbols) for Calvin, purple (diamond symbols) for Brett, and tan (rectangle symbols) for Angie. Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a DVD player at a market prio ce of $175. (Note: If a person is not willing to sell this item at the market price, you will leave his or her rectangle original position on the side of the graph.) PRICE IDollars per DVD play o QUANTITY DVD player will sell DVD players at the Based on the information on the previous graph, you can tell that given market price, and total producer surplus in this market will be

Answer 1

Ans) Willingness to sell is the lowest amount that a seller is ready to accept for the product. If price is below willingness to sell, seller will not sell the product.

Producer surplus = Market price - willingness to sell.

For eg- in first case, when price is $175, producer surplus of Angie = $175 - $50 = $125

6. Producer surplus for a group of sellers Aa Aa E The following graph shows the supply curve for a group of sellers in the U.S. market for DVD players. Each seller has only one DVD player to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one seller. The market price of a DVD player is $175, as shown by the black horizontal line. Each rectangle on the following graph corresponds to a particular seller in this market: blue (circle symbols) for Eric, green (triangle symbols) for Diego, red (cross symbols) for Calvin, purple (diamond symbols) for Brett, and tan (rectangle symbols) for Angie. Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a DVD player at a market prio ce of $175. (Note: If a person is not willing to sell this item at the market price, you will leave his or her rectangle original position on the side of the graph.) PRICE IDollars per DVD play Die QUANTITY DVD player (Angle, brett and Calvin Mows graph, you can rest eat be 2 SCICIS will sell DVD plavers at the Based on the information on the previous graph, you can tell that given market price, and total producer surplus in this market will be 5

E the ill sell DVD players Based on information on previous graph, you can tell that given market price, and total producer surplus in this market will be Suppose the market price of a DVD player changes to $225. On the following graph, use the rectangles once again shade the areas representing producer surplus for each person who is willing to sell a DVD player at the new market price: blue (circle symbols) for Eric, green (triangle symbols) for Diego, red (cross symbols) for Calvin, purple (diamond symbols) for Brett, and tan (rectangle symbols) for Angie. PRICE Dollars per DVD player) BU QUANTITY (DVD players Help Based on the information from the graph, if the market price willing to sell a DVD player would crease to increase to player changed to $225, the number of sellers and total producer surplus would