<p> In-Class Week 4: Producer Surplus Figure 7-8</p><p>Price 300</p><p>275</p><p>250 S' S 225</p><p>200</p><p>175</p><p>150</p><p>125</p><p>100</p><p>75</p><p>50</p><p>25 D D'</p><p>25 50 75 100 125 150 175 200 Quantity</p><p>____ 1. Refer to Figure 7-8. If the supply curve is S, the demand curve is D, and the equilibrium price is $100, what is the producer surplus? a. $625 b. $1,250 c. $2,500 d. $5,000 ____ 2. Refer to Figure 7-8. If the demand curve is D and the supply curve shifts from S’ to S, what is the change in producer surplus? a. Producer surplus increases by $625. b. Producer surplus increases by $1,875. c. Producer surplus decreases by $625. 3. Refer to Figure 7-9. If the equilibrium price rises from $50 to $200, what is the additional producer surplus to initial producers? a. $625 b. $3,750 c. $5,625 d. $10,000</p><p>1 Figure 7-10</p><p>Price 170</p><p>160</p><p>150 S</p><p>140</p><p>130</p><p>120</p><p>110</p><p>100</p><p>90</p><p>80</p><p>70</p><p>60</p><p>50</p><p>40</p><p>30</p><p>20</p><p>10 D</p><p>1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Quantity</p><p>____ 4. Refer to Figure 7-10. If the government imposes a price ceiling of $70 in this market, then the new producer surplus will be a. $50. b. $100. c. $175. d. $350. ____ 5. Refer to Figure 7-10. If the government imposes a price ceiling of $70 in this market, then producer surplus will decrease by a. $50. b. $125. c. $150. d. $200.</p><p>2 Figure 7-11</p><p>Price</p><p>Supply</p><p>P2 B A</p><p>P1 C G</p><p>D</p><p>Q1 Q2 Quantity</p><p>____ 15. Refer to Figure 7-11. When the price is P2, producer surplus is a. A. b. A+C. c. A+B+C. d. D+G.</p><p>3</p>