Answer to Question #259083 in Microeconomics for Sahlah Ahmed

Question

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

Answer 1

Supply curve: $q=3+1.5p\\p=\frac{q-3}{1.5}=0.67q-2$

$-q( at\space p=12)=3+1.5(12)=21\space units$

q at (p=0) = 3 units

$P.S=\frac{1}{2}(market\space price-min\space price\space willing\space to\space receive)\times q\\=\{(12\times 3)\}+\{\frac{1}{2}(21-3)\times12\}\\=\$144$