Question

Figure 9-3. The domestic country is Jamaica. Calculalors $27 Doiestic Supply World Price Domestic Demand 2 0 Quantity of Calculators U150300 400 Refer to Figure 9-3. Producer surplus in Jamaica without trade is $8,700 o $1,500 O $2,250 $375 $2,000

Answer 1

The producer surplus is the area below the price line and above the supply curve, the producer surplus without trade calculated as follows.

Producer surplus $=1/2 bh$

b= base

h= height.

$=1/2 \times 300\times 10$

  $=1/2 \times 3000$

  $=1500$

Ans: Producer surplus- $1500$