1. The cost of producing flat-screen TVs has fallen over the past decade. If demand remains the same, what happens to equilibrium price and quantity?
1. The cost of producing flat-screen TVs has fallen over the past decade. If demand remains the same, what happens to equilibrium price and quantity? What happens to consumer surplus? What happens to producer surplus?
2. John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400. How much does John's producer surplus rise as a result of this price increase?
Step by Step Solution
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Step: 1
1 Impact of a Fall in Production Costs on FlatScreen TVs Scenario The cost of producing flatscreen TVs has decreased with demand remaining constant Ef...
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Authors: Christopher Thomas, S. Charles Maurice
12th edition
1260004759, 9781260004755, 78021715, 78021718, 78021901, 978-0078021909
