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Assume the Market in the Graph Is in Equilibrium at Demand

Question 78

Multiple Choice

Assume the market in the graph is in equilibrium at demand (D) and supply (S<sub>1</sub>) . If supply shifts to S<sub>2</sub>, and a new equilibrium is reached, which of the following statements is true? A) Consumer surplus increases by $45. B) Producer surplus decreases by $45. C) Consumer surplus increases by $90. D) Total surplus increases by $45. Assume the market in the graph is in equilibrium at demand (D) and supply (S1) . If supply shifts to S2, and a new equilibrium is reached, which of the following statements is true?


A) Consumer surplus increases by $45.
B) Producer surplus decreases by $45.
C) Consumer surplus increases by $90.
D) Total surplus increases by $45.

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