If there was an effective price ceiling of $40 placed on the price of the jeans, the producer surplus would change by -$532.50.
What is the change in producer surplus?
The producer surplus is found by the formula:
= 0.5 x (Price - minimum willingness to sell) x Quantity sold
At the initial equilibrium price of $50, the producer surplus was:
= 0.5 x (50 - 10) x 60
= $1,200
After the price ceiling was implemented:
= 0.5 x (40 - 10) x 44.5
= $667.50
The change is:
= 1,200 - 667.50
= -$532.50
Find out more on producer surplus at https://brainly.com/question/6253601.
