Since MC increases by $10, the new market supply is P = MC+Q = Q+10
The new equilibrium is 404-2P = P-10 –> Q* = 128, P* = 138.
Then the PS = 1/2 (P*)(Q*) = 0.5*128*(138-10) = $8192
Since MC increases by $10, the new market supply is P = MC+Q = Q+10
The new equilibrium is 404-2P = P-10 –> Q* = 128, P* = 138.
Then the PS = 1/2 (P*)(Q*) = 0.5*128*(138-10) = $8192