PeyemGambocks PeyemGambocks

03-03-2017
Business

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If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

Respuesta :

11-03-2017

Based on the graph I found in searching for similar question,
Equilibrium price of 60 has a quantity of 80.
Equilibrium price of 120 has a quantity of 160.

Additional producer surplus to initial producer is:

(120-60) * (160-80) = 60 * 80 = 4,800

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