Question

The following graph shows the supply curve for a group of students looking to sell used tablets. Each student has only one used tablet to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used tablet.

 Region A (the purple shaded area) represents the total producer surplus when the market price is _______ , while Region B (the grey shaded area) represents _______ when the market price _______ .

 In the following table, indicate which statements are true or false based on the information provided on the previous graph. 

Statement

 Producer surplus is larger when the price is $280 than when it is $200.

 Assuming each student receives a positive surplus, Janet will always receive more producer surplus than Larry.

 In order for Raphael to earn a producer surplus of exactly $120 from selling a used tablet, the market price needs to be _______ .

Answer 1

Blanks are answered in order

Market price is 200

Increase in producer surplus when the market price is 280.

statement 1- true

Statement 2- true

Market price needs to be 440