Finding the supply curve of a commodity

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Reference no: EM132208271

Question: The supply curve of a commodity is given by the equation:

Qs = 40P - 60 (P is measured in $, Q is measured in millions of units)

A fall in demand caused by increased availability of substitutes for consumers leads to a fall in the market price of this commodity from $6 to $4. The loss in producer surplus for the producers of this commodity from the change is:

A. $280m

B. $160m

C. $140m

D. $80m

Reference no: EM132208271

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