Carol purchases a piece of art for $23 for which she was willing to pa}...I $32. Larry, the sellerr was not going to accept less than $20. This scenario is explained as if) a producer surplus of $3 and Roger experiences a consumer surplus of $3. ff) 3 consumer surplus of $12 and Roger experiences a producer surplus of $3. If) a consumer surplus of $3 and Roger experiences a producer surplus of $3. ff) a producer surplus of $9 and Roger experiences a producer surplus of $12. Consumer surplus shown on a graph as the triangle: O under the demand curve and below the actual price. O above the supply curve and above the actual price. O above the supply curve and below the actual price. O under the demand curve and above the actual price.Refer to the diagram. Assuming equilibrium price P1, producer surplus is represented by areas: Page M Q1 Consumer Surplus and Producer Surplus OL+ M. OH + J + / +k. OI +K. OH + J.According to the graph, the equilibrium price and quantity in this market will be: $4.50 4.00 3.50 3.00 2.50 Price per dozen bagels 2.00 1.50 - 1.00 D 0.50 0.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity (thousands of dozens per month) O $2.50 and 10. O $2.00 and 10. O $2.00 and 8. O $2.50 and 8.Concerning changes in equilibrium, which of the following statements is correct? O If supply increases and demand decreases, equilibrium price will fall. O If demand decreases and supply increases, equilibrium price will rise. O If demand increases and supply decreases, equilibrium price will fall. O If supply declines and demand remains constant, equilibrium price will fall.Consider that the original demand and supply curves are D, and $1, equilibrium price and quantity will be: S2 S1 Price P D3 D1 q2 q1 q0 Quantity q O P2 and Q0 respectively. O P1 and Q1 respectively. O P3 and Q1 respectively. O PO and Q0 respectively.Refer to the diagram for a market product. Given D1, if the supply curve moved from S1 to $2, then: S2 S1 Price P D2 D1 q2 q1 qo Quantity q O there has been an increase in the quantity supplied. O supply has increased and equilibrium quantity has decreased. O there has been an increase in the quantity supplied. O supply has decreased and equilibrium quantity has decreased.Refer to the diagram for a market product. A shift in the demand curve from D1 to D2 might be caused by a(n): Sz S1 Price P D2 D1 q2 q1 q0 Quantity q O decrease in income if X is an inferior good. O increase in the price of complementary good Y. O increase in money incomes if X is a normal good. O increase in the price of substitute product Y.In the situation where the supply and demand curves for a product both decrease, then equilibrium: O quantity must decline, but equilibrium price may rise, fall, or remain unchanged. O quantity and equilibrium price must both decline. O quantity must fall and equilibrium price must rise. O price must fall, but equilibrium quantity may rise, fall, or remain unchanged.An extremely large harvest of corn might: O increase the price of cereal. O increase the price of oatmeal. O decrease the quantity of cereal consumed. O increase the supply of cereal.Which of the above diagrams below show the impact on the production of apples if there is an increase in the wages of apple harvesters? Panel (a) Panel (b) An Increase in demand A decrease in demand 59 51 51 Price per pound Price per pound NOW 5 10 15 20 25 30 35 40 45 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity [millions of pounds per month) :Panel (c) Panel (d) An increase in supply A decrease in supply 59 51 52 Price per pound Price per pound $ 10 15 20 25 30 35 40 45 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) O C only. O A only. O B only. O D only.Which of the following graphs show the effect of a decline in the price of jelly and jam on the market for peanut butter? Panel (a) Panel (b) An Increase in demand A decrease in demand 59 59 Price per pound Price per pound 5 10 15 20 25 30 35 40 45 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) Panel (c] Panel [d) An Increase in supply A decrease in supply 59 51 $9 52 Price per pound Price per pound DI 5 10 15 20 25 30 35 40 45 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) O A only. O A and D. O B only. O D only.Which of the graphs show the effect of an increase in the price of Mcdonald's on the market for Burger King? Panel (a) Panel (b) An increase in demand A decrease in demand 51 59 DI Price per pound Price per pound D, 5 10 15 20 25 30 35 40 45 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) Panel icl Panel [d) An increase in supply A decrease in supply 59 51 $2 Sa Price per pound D, Price per pound 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) O C only. O A and C. O A only. O B only.Which graphs shows the effect a new discovery of cobalt, a metal used in cell phones, upon the market for cell phones? Panel (a) Panel (b) An increase in demand A decrease in demand 151 Price per pound Price per pound DI 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) Panel (c) Panel (d) An increase in supply A decrease in supply 59 51 52 Price per pound Price per pounc 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) O B only. O C only. O A only. O A and C.In a market economy, an increase in consumer income will: Panel (a) Panel (b) An increase in demand A decrease in demand $9 51 59 51 Dz Price per pound Price per pound - NW 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) Panel (C Panel (d) An increase in supply A decrease in supply 59 $9 152 52 Price per pound D1 Price per pound 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 Quantity (millions of pounds per month) Quantity (millions of pounds per month) O decrease equilibrium price and quantity if the product is a normal good. increase equilibrium price and quantity if the product is a normal good. O have no effect on equilibrium price and quantity. reduce the quantity demanded, but not shift the demand curve.Over the last several decades, the equilibrium price of computer printers has fallen while the equilibrium quantity purchased has increased. This can be explained by: O Decreases in the supply of computer printers have exceeded increases in demand. O Decreases in the demand for computer printers have exceeded increases in supply. O Increases in the supply of computer printers have exceeded increases in demand. O Increases in the demand for computer printers have exceeded increases in supply.Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that: O The supply of clothing has grown faster than the demand for clothing. O Demand for clothing has grown faster than the supply of clothing. O The supply of and demand for clothing have grown by the same proportion. O There is no way to determine what has happened to supply and demand with this information
