Solved

Assume the Market Is in Equilibrium in the Graph Shown

Question 58

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S<sub>2</sub>.If the supply curve shifts to S<sub>1</sub>,and a new equilibrium is reached,which of the following is true? A) Producer surplus would increase, and total surplus would increase. B) Producer surplus would decrease, and total surplus would increase. C) Producer surplus would increase, and total surplus would decrease. D) Producer surplus would decrease, and total surplus would decrease. Assume the market is in equilibrium in the graph shown at demand D and supply S2.If the supply curve shifts to S1,and a new equilibrium is reached,which of the following is true?


A) Producer surplus would increase, and total surplus would increase.
B) Producer surplus would decrease, and total surplus would increase.
C) Producer surplus would increase, and total surplus would decrease.
D) Producer surplus would decrease, and total surplus would decrease.

Correct Answer:

verifed

Verified

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

Related Questions

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

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

Q55: A seller's willingness to sell:<br>A) is the

Q56: Total surplus:<br>A) can never be negative.<br>B) is

Q57: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1248/.jpg" alt=" According to the

Q59: If Claire's reservation price on a sweater

Q60: Total surplus:<br>A) is producer and consumer surplus

Q61: Assume there are three hardware stores,each willing

Q62: Assume there are three hardware stores,each willing

Q63: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1248/.jpg" alt=" Assume the market