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21 May, 15:03

If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

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  1. 21 May, 17:45
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    Based on the graph I found in searching for similar question,

    Equilibrium price of 60 has a quantity of 80.

    Equilibrium price of 120 has a quantity of 160.

    Additional producer surplus to initial producer is:

    (120-60) * (160-80) = 60 * 80 = 4,800
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