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Assume the Market Is in Equilibrium in the Graph Shown

Question 37

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S1 (at a quantity of 5) .If the supply curve shifts to S2,and a new equilibrium is reached (at a quantity of 7) ,which of the following is true? A) Total surplus increases by $12.50. B) Total surplus decreases by $12.50. C) Total surplus increases by $15.50. D) Total surplus decreases by $15.50. Assume the market is in equilibrium in the graph shown at demand D and supply S1 (at a quantity of 5) .If the supply curve shifts to S2,and a new equilibrium is reached (at a quantity of 7) ,which of the following is true?


A) Total surplus increases by $12.50.
B) Total surplus decreases by $12.50.
C) Total surplus increases by $15.50.
D) Total surplus decreases by $15.50.

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