Ask Question
23 October, 12:14

John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enters the market and begins tutoring as well. How much does producer surplus rise as a result of this price increase? a. by less than $100b. between $100 and $200 c. between $200 and $300 d. by more than $300

+4
Answers (1)
  1. 23 October, 15:28
    0
    b. between $100 and $200

    Explanation:

    Producer surplus: The producer surplus is a difference between the willing price declared by the producers and the price the producers receives for supplying the goods and services.

    In mathematically,

    Producer surplus = Willing price - Receiving price

    = $400 - $300

    = $100
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enters the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers