Respuesta :
Answer:
The correct answer is option D.
Explanation:
There are three hardware stores, each willing to sell one standard model hammer in a given time period.
House Depot can offer their hammer for a minimum of $7.
Lace Hardware can offer the hammer for a minimum of $10.
Bob's Hardware store can offer the hammer at a minimum price of $13.
The producer surplus is the difference between the minimum price that a producer is willing to accept and the price he actually gets.
At a price of $8 only House Depot will suppl.
Total producer surplus will be
= $8 - $7
= $1
At price $11 Home Depot and Lace Hardware will supply.
Total producer surplus will be
= ($11 - $7) + ($11-$10)
= $4 +$1
= $5
The increase in producer surplus
= $5 - $1
= $4
If the market price of price of hammers increased from $8 to $11 total producer surplus would increase by $4.
The producer surplus is the difference between the least price a producer is willing to sell his good or service and the price of the product.
Producer surplus = price - least price the seller is willing to sell his product.
Total producer surplus is the sum of the producer surplus of each producer.
Producer surplus when price was $8
House Depot: $8 - $7 = $1
Lace Hardware and Bob's Hardware store would not sell because the price of the good is less than the minimum price they are willing to sell,
Producer surplus when price was $8
House Depot: $11 - $7 = $4
Lace Hardware: $11 - $10 = $1
Bob's Hardware store would not sell because the price of the good is less than the minimum price of the store.
Total producer surplus = $5
Change in producer surplus = $5 - $1 = $4.
To learn more, please check: https://brainly.com/question/22279067?referrer=searchResults
