Answer:
Step 1: Graph the supply curve
The supply curve is given by QS = 2P. To graph this, we can rearrange the equation to get P = QS/2. This is a linear equation, and when we graph it, we get a straight line with a slope of 1/2 and a y-intercept of 0.
Step 2: Find the quantity supplied at the market price
The market price is $10, so we can plug this into the supply equation to find the quantity supplied:
QS = 2P QS = 2(10) QS = 20
So, the quantity supplied at the market price of $10 is 20 units.
Step 3: Calculate the producer surplus
The producer surplus is the area above the supply curve and below the market price. Since the supply curve is a straight line, the area above it is a triangle. The formula for the area of a triangle is:
Area = (base × height) / 2
In this case, the base of the triangle is the quantity supplied (20 units), and the height is the market price ($10).
Producer Surplus = (20 × 10) / 2 Producer Surplus = 100
So, the producer surplus is $100.
How I got the answer
I graphed the supply curve and found the quantity supplied at the market price. Then, I calculated the producer surplus by finding the area above the supply curve and below the market price, which is a triangle. Finally, I used the formula for the area of a triangle to get the producer surplus of $100.
Explanation: