QUESTION 22 On a graph, the area below a demand curve and above the price measures O a producer surplus. O b. consumer surplus. O c. total surplus. d. willingness to pay.
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- What is producer surplus? How is it illustrated on a demand and supply diagram?Od. The quantity demanded Which of the following statements is TRUE? Select one: O a. Total surplus is the area between demand and price O b. Producer surplus is the area between suppy and price O c. Consumer surplus is the area between demand and the X-axis O d. Consumer surplus is the area between supply and the X-axis Nert pWhich of the following statements is false regarding Producer Surplus? Time le O a. Producer surplus is the net economic benefit received by producers O b. Producer surplus is the difference between market price and marginal cost O c. Producer surplus is maximum under unregulated markets when there are sales taxes Od. Producer surplus is the area below the market price and above the supply curve Oe. Producer surplus is the difference between the total surplus and consumer surplus
- Figure 7-2 180 150 120 110 Supply 90 70 60 30 Demand 10 15 20 25 30 QUANTITY Refer to Figure 7-2. At the equilibrium price, consumer surplus is O a. $1,600. O b. S800. O c. S600. O d. $200. PRICESuppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay? pls explain by drawing diagramsSuppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will Select one: O a. decrease, and producer surplus in the industry will decrease. Ob. decrease, and producer surplus in the industry will increase. O c. increase, and producer surplus in the industry will increase. Oc. O d. increase, and producer surplus in the industry will decrease. N eg IMG_7969.jpeg JPED
- Choose the best statement O A. Producer surplus is the excess of the value of the good over the market price, summed over the quantity produced OB. If producers decrease the supply of a good, their producer surplus will increase OC. Producer surplus equals the total revenue from selling the good OD. An increase in the demand for a good increases producer surplusRefer to Figure 7-2. At the equilibrium price, consumer surplus is O a $1,600 O b. $1,400. O $700 Od 1800 180 150 120 110 PRICE 90 28 2 6 10 15 QUANTITY 20 25 Supply Demand 3011.00 10.00 9.00 8:00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 1200 1500 Supply Domand 1800 2100 2400 Suppose that a $4 subsidy is given to consumers in this market, what is cost of the subsidy? O a. $6,000 O b. $7,200 O c. $4,800 O d. $1,200
- Which best describes producer surplus? O a. The profits made by a firm O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells O c. The price producers would like to receive to accept to sell a unit of the good O d. The cost of providing a unit We can measure total consumer surplus for good X as: O a. the area bounded by the demand curve for X and the two axes. O b. the area above the demand curve for X and below the price of X. O c. the sum of the individual consumer surpluses for all buyers of X O d. the area above the supply curve for X.This is the demand and supply for ABC company that sells widgets in Texas. Refer to the diagram below, if the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is $ 80 $70 $60 $ 50 $ 40 $ 30 $ 20 $ 10 10 20 30 40 50 60 70 80 90 Q(Widgets) O a. $5.00 O b. $15.00 O C. $30.00 O d. $40.00and Elasticity The figure shows Arnold's demand curve for burritos. If the market price is $1.00, what is Arnold's consumer surplus? 3 structor O A. $1.00 OB. $2.00 OC. $3.00 O D. $7.00 E D C 4 R F V FEB 6 % 5 T G B 6 Y tv MacBook Pro H & 7 Ç N U J * 00 8 2 M Price (dollars per burrito) $2.50 A ( 9 K 2.00 1.50 1.00 O ( H L X Clear all Aa P 2 command POR 3 I Final check 1 + 11 [ ? 11 } Dem ]