Answer to Question #258665 in Microeconomics for Sonu

Question

İf the supply curve is q = 3 + 1.5p, what is the producer surplus if the price is 12?

Answer 1

q = 3 + 1.5p

p=12

$q=3+1.5\times12=3+18=21$

Let Pmin=4

$producer surplus=0.5(Po-Pmin)\times q=0.5(12-4)\times21=84$