Use the following diagram of a market for potted plants to answer the questions below about consumer
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Use the following diagram of a market for potted plants to answer the questions below about consumer surplus.
b. Now suppose supply increases to S1. Determine the new equilibrium price and quantity. What is the area that now represents total consumer surplus?
c. At the new lower price, what is the area that represents the increased consumer surplus earned on the original units purchased?
d. At the new lower price, what is the area that represents consumer surplus earned on the new units purchased?
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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