Question

question 12 of 19
last year the average price for an airline ticket was $450, but the average price dropped to $375 this year due to a decrease in the demand for airplane travel. the accompanying table contains information on the supply of air travel.
a. using the information in the table, move the points on the graph to sketch a supply curve.
b. shade the area on the graph that represents producer surplus from the previous year when the price was $450. also shade the area that represents producer surplus this year after the price has dropped to $375.
click on the ps triangle buttons to place the triangles on the graph.

Explanation:

Step1: Sketch supply - curve

We have price - quantity pairs ($150, 200$), ($300, 500$), ($450, 800$), ($600, 1100$), ($750, 1400$). Plot these points on a graph with price on the y - axis and quantity supplied on the x - axis and connect them to form a supply curve.

Step2: Calculate producer surplus

Producer surplus is the area above the supply curve and below the price. For the price of $P = 450$, find the intersection of the price line $P = 450$ and the supply curve. The producer surplus is the area of the triangle formed by the supply curve, the vertical line at the quantity supplied at $P = 450$ and the price line $P = 450$. Repeat the same process for $P = 375$. Shade the respective areas on the graph.

Since this is a graphical task, we cannot provide a numerical answer. The key steps are to plot the points to form the supply curve and then identify and shade the producer - surplus areas.

Answer:

a. Plot the points ($150, 200$), ($300, 500$), ($450, 800$), ($600, 1100$), ($750, 1400$) on the graph and connect them to form the supply curve.
b. Shade the area above the supply curve and below the price line $P = 450$ for last - year's producer surplus and shade the area above the supply curve and below the price line $P = 375$ for this - year's producer surplus on the graph.