Question
6. (14 points) Again, use the bell pepper graph to answer the following questions. a.At the equilibrium price and quantity, what is consumer surplus in
6. (14 points) Again, use the bell pepper graph to answer the following questions.
a.At the equilibrium price and quantity, what is consumer surplus in the bell pepper market?
b.If the price rises, what happens to consumer surplus - does it rise, fall, or stay the same?Briefly explain your answer.
c.Suppose that all of the world's bell pepper producers have to buy a special license to grow bell peppers.What is the largest amount of money that all of the producers, collectively, would be willing to pay for those licenses?Briefly explain your answer.
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