Multiple Choice
If a market is allowed to move freely to its equilibrium price and quantity,what will be the result of an increase in supply on consumer surplus and producer surplus
A) increased consumer surplus and increased producer surplus
B) reduced consumer surplus and reduced producer surplus
C) increased consumer surplus and uncertain change in producer surplus
D) reduced consumer surplus and uncertain change in producer surplus
Correct Answer:
Verified
Correct Answer:
Verified
Q162: Market demand is given as Q<sub>D </sub>=
Q163: What does consumer surplus equal<br>A)value to buyers
Q164: Figure 7-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1272/.jpg" alt="Figure 7-1
Q165: At the equilibrium price,which buyers will purchase
Q168: What happens to consumer surplus if the
Q169: If demand decreases,what happens to the price
Q170: Figure 7-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1272/.jpg" alt="Figure 7-4
Q171: Which quantity does producer surplus NOT measure<br>A)the
Q172: Figure 7-6<br><br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1272/.jpg" alt="Figure 7-6
Q205: Producer surplus is the amount a seller