Q: Define a Price Floor.

A: A minimum price at which goods or services are allowed to trade.

Q: If Demand is P=75-Q and Supply is P=-25+Q, find Producer Surplus.

A: First we must find the equilibrium price and quantity.

To do this set Supply and Demand
equal.

75-Q=-25+Q or 100=2Q or Qe=50.

Plug this Q back into Supply or
Demand and you find that Pe=75-50=25.

Now we need to see what shape PS
has.

Since Supply crosses the quantity
axis at a positive number, PS is not a triangle.

To find this number plug in a price
of 0 into the Supply curve.

You should find the x-intercept is
25.

So PS=25*25+(1/2)*(50-25)25= $937.50