(Solved): 6. Producer surplus and price changes The following graph shows the supply curve for a group of st ...

6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used math textbooks. Each student has only one used textbook to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used textbook. PRICE (Dollars per used textbook) 480 400 320 240 160 80 0 ? Larry D 0 1 B Megan Raphael Susan D-4 Alex 2 3 QUANTITY (Used textbooks) ??? 5 Becky ? Region A (the purple shaded area) represents the total producer surplus when the market price is $100, while Region B (the grey shaded area) represents the change in total producer surplus when the market price changes from $200 to $280. In the following table, indicate which statements are true or false based on the information provided on the previous graph. True False Statement Producer surplus is smaller when the price is $280 than when it is $200. Assuming each student receives a positive surplus, Megan will always receive less producer surplus than Raphael. In order for Alex to earn a producer surplus of exactly $120 from selling a used textbook, the market price needs to be S