Solved

Assume the Market Is in Equilibrium in the Graph Shown

Question 49

Multiple Choice

Assume the market is in equilibrium in the graph shown 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) Consumer surplus increases, and total surplus increases. B) Consumer surplus decreases, and total surplus increases. C) Consumer surplus increases, and total surplus decreases. D) Consumer surplus decreases, and total surplus decreases. Assume the market is in equilibrium in the graph shown 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) Consumer surplus increases, and total surplus increases.
B) Consumer surplus decreases, and total surplus increases.
C) Consumer surplus increases, and total surplus decreases.
D) Consumer surplus decreases, and total surplus decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q45: Deadweight loss:<br>A) occurs when the market price

Q46: When a market is efficient:<br>A) there is

Q47: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1248/.jpg" alt=" According to the

Q48: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1248/.jpg" alt=" Assume the market

Q50: Assume a market that has an equilibrium

Q51: Assume a market that has an equilibrium

Q52: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1248/.jpg" alt=" Assume the market

Q53: Surplus is:<br>A) a measure of the value

Q54: Creating a market that was previously "missing":<br>A)

Q115: Deadweight loss:<br>A) occurs in markets that are