The supply function is $p = 3 + x$ , and the market price is ₹11. What is the producer surplus?

₹31Correct answerYour answer₹32Correct answerYour answer₹56Correct answerYour answer₹88Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

At $p_0 = 11$ , producers supply $x_0 = 8$ units and receive $11 \times 8 = 88$ rupees.
$PS = 88 - \int_{0}^{8} (3 + x)\,dx = 88 - (24 + 32) = 32$ rupees.

Worth noting

₹56 is the area under the supply curve, the least producers would accept, not the surplus above it.

Ten questions from Consumer & Producer Surplus, at your own pace.

Ten questions from Consumer & Producer Surplus, at your own pace.

The supply function is p=3+xp = 3 + xp=3+x, and the market price is ₹11. What is the producer surplus?