chapter 07: aplia homework\nthe following graph shows the supply curve for a group of students looking to…

chapter 07: aplia homework\nthe following graph shows the supply curve for a group of students looking to sell used finance 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 their used textbook.\nregion 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 $100 to $140.\ncomplete the following table by indicating which statements are true or false based on the information provided on the previous graph.\nstatement true false\nassuming each student receives a positive surplus, larry will always receive more producer surplus than megan.\nproducer surplus is smaller when the price is $140 than when it is $100.\nin order for becky to earn a producer surplus of exactly $60 from selling a used textbook, the market price needs to be $

chapter 07: aplia homework\nthe following graph shows the supply curve for a group of students looking to sell used finance 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 their used textbook.\nregion 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 $100 to $140.\ncomplete the following table by indicating which statements are true or false based on the information provided on the previous graph.\nstatement true false\nassuming each student receives a positive surplus, larry will always receive more producer surplus than megan.\nproducer surplus is smaller when the price is $140 than when it is $100.\nin order for becky to earn a producer surplus of exactly $60 from selling a used textbook, the market price needs to be $

Answer

Explanation:

Step1: Analyze producer - surplus concept

Producer surplus is the difference between the market price and the cost (minimum acceptable price) of the producer.

Step2: Evaluate first statement

Larry's cost is lower than Megan's. If each has a positive surplus, since producer surplus = market price - cost, with the same market price, Larry will have a higher producer surplus. So the statement "Assuming each student receives a positive surplus, Larry will always receive more producer surplus than Megan" is True.

Step3: Evaluate second statement

As the market price increases from $100 to $140, the producer - surplus increases. Producer surplus is the area above the supply curve and below the market - price line. A higher market price means a larger area of producer surplus. So the statement "Producer surplus is smaller when the price is $140 than when it is $100" is False.

Step4: Calculate Becky's required market price

Becky's cost is $180. Let the market price be $P$. We know that producer surplus = $P - 180$. If producer surplus = $60$, then $P-180 = 60$, so $P=180 + 60=240$.

Answer:

Statement 1: True Statement 2: False Becky's market price: $240$