Asked by Carmen Stavole on Jul 26, 2024

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(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market.Calculate the change in producer surplus when the price increases from $10 to $15.

A) $250
B) $1,000
C) $625
D) $1,125

Producer Surplus

The inequality between the monetary expectations of producers for a good or service and the actual monetary outcome.

Wireless Mouse Market

The segment of the market that deals with the selling and purchasing of cordless mice, a common computer peripheral.

  • Determine the adjustments in producer surplus in response to changes in market prices and quantities.
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JD
Jordy DominguezJul 27, 2024
Final Answer :
C
Explanation :
To calculate the change in producer surplus, we need to first find the producer surplus at each price level. At $10, producer surplus is the area of the triangle between the supply curve and the equilibrium point, which is (20-10) x (100-0) / 2 = $500. At $15, producer surplus is the area of the rectangle above the supply curve and between the two price levels, which is (15-10) x (100-20) = $500 - $125 = $375. Therefore, the change in producer surplus is $375 - $500 = -$125. However, since producer surplus is measured as a positive value, we take the absolute value and get $125, which is closest to option C.