Figure: Bananas Refer to the Figure

question 168

Multiple Choice

Figure: Bananas Refer to the figure. If the price of bananas in the diagram is $6 a pound, what is the total producer surplus?

• A) $80,000
• B) $120,000
• C) $160,000
• D) $240,000

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Definitions:

Legal Price

The price of a good or service as determined by law, regulation, or government intervention.

Price Wall

A situation where the price of a product or service faces resistance moving higher or lower beyond a certain point.

Minimum Wage Laws

Legislation that sets the lowest hourly rate that can be paid to workers, intended to protect employees from unduly low pay.

Labor Supplied

The total hours that workers are willing to work at a given wage rate, representing the workforce available to the economy.