Choose the best statement. OA. 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 surplus

Choose the best statement. OA. 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 surplus

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 55P: Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the...

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Similar questions

Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price. A new study says that eating cheese is good for your health, so that demand increases by 20 at every price.
Define the price elasticity of supply. Explain why the price elasticity of supply might be different in the long run than in the short run.
What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?
Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.
When the price is above the equilibrium, explain how market forces move me market price to equilibrium. Do the same when the price is below the equilibrium.
An increase in the supply of a good will decrease the total revenue producers receive if a. the demand curve is inelastic. b. the demand curve is elastic. c. the supply curve is inelastic. d. the supply curve is elastic.
The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same?
When someones kidneys fail, the person needs to have medical treatment with a dialysis machine (unless or until they receive a kidney transplant) or they will die. Sketch a supply and demand diagram, paying attention to the appropriate elasticities, to illustrate that the supply of such dialysis machines will primarily determine the pure.