Based on the Graph Below, What Is the Producer Surplus

question 151

Multiple Choice

Based on the graph below, what is the producer surplus of the 10^th unit bought/sold?

• A)$1.25
• B)$2.25
• C)$2.75
• D)$3.50
• E)$6.25

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Definitions:

Producer Price Index

An economic indicator representing the average change over time in the selling prices received by domestic producers for their output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to track changes in living costs.

Consumer Price Index

A measure that determines the average movement over time in the pricing urban shoppers pay for a selected assortment of consumer goods and services.

Producer Price Index

A gauge of economic health that records the mean shift over periods in the sale prices domestic producers earn from their output.