The chair price rises to ₹52.

Question 70

HardOriginal question

The supply function for a kind of handmade chair is $p = 4 + 3x^{2}$ , where $p$ is the price in rupees and $x$ the quantity supplied. The market price is ₹31.

The chair price rises to ₹52. What is the producers' surplus now?

₹80Correct answerYour answer₹128Correct answerYour answer₹192Correct answerYour answer₹208Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

$4 + 3x^{2} = 52$ gives $x = 4$ ; makers receive $52 \times 4 = 208$ .
$PS = 208 - (16 + 64) = 128$ .

Worth noting

₹80 is the area under the supply curve, not the surplus above it.

Concept: How a price rise adds to the surplus
Typical timeTypical: 150 s
Your timeYours: —

The rule this testsProducer surplus

Practise this chapter →

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

Practise this chapter →

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

The chair price rises to ₹52.

Question 70

Explanation