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Assume the Market Depicted in the Graph Is in Equilibrium

Question 29

Multiple Choice

Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S<sub>1</sub>) . If the supply curve shifts to S<sub>2</sub>, and a new equilibrium is reached, which of the following is true? A) Total surplus decreases by $90. B) Total surplus decreases by $10. C) Total surplus increases by $250. D) Total surplus increases by $90. Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S1) . If the supply curve shifts to S2, and a new equilibrium is reached, which of the following is true?


A) Total surplus decreases by $90.
B) Total surplus decreases by $10.
C) Total surplus increases by $250.
D) Total surplus increases by $90.

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