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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 21
Use the areas labeled in the market represented in Figure 5P-7 to answer the following questions.
a. What area(s) are consumer surplus at the market equilibrium price?
b. What area(s) are producer surplus at the market equilibrium price?
c. Compared to the equilibrium, what area(s) do consumers lose if price is P 2 ?
d. Compared to the equilibrium, what area(s) do producers lose if the price is P 2 ?
e. Compared to the equilibrium, what area(s) do producers gain if the price is P 2 ? f. Compared to the equilibrium, total surplus decreases by what area(s) if the price is P 2 ?
a. What area(s) are consumer surplus at the market equilibrium price?
b. What area(s) are producer surplus at the market equilibrium price?
c. Compared to the equilibrium, what area(s) do consumers lose if price is P 2 ?
d. Compared to the equilibrium, what area(s) do producers lose if the price is P 2 ?
e. Compared to the equilibrium, what area(s) do producers gain if the price is P 2 ? f. Compared to the equilibrium, total surplus decreases by what area(s) if the price is P 2 ?
Explanation
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Figure:
Figure -1 illustrates the equil...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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