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18 December, 03:14

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

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  1. 18 December, 07:05
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    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
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