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Assume the Market Is in Equilibrium in the Graph Shown

Question 48

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S<sub>2</sub> (at a quantity of 6) .If the supply curve shifts to S<sub>1</sub>,and a new equilibrium is reached (at a quantity of 4) ,which of the following is true? A) Total surplus would increase by $7.50. B) Total surplus would decrease by $16.50. C) Total surplus would increase by $32. D) Total surplus would decrease by $14.00. Assume the market is in equilibrium in the graph shown at demand D and supply S2 (at a quantity of 6) .If the supply curve shifts to S1,and a new equilibrium is reached (at a quantity of 4) ,which of the following is true?


A) Total surplus would increase by $7.50.
B) Total surplus would decrease by $16.50.
C) Total surplus would increase by $32.
D) Total surplus would decrease by $14.00.

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