The diagram shows the market for gardening services. At the market-clearing price and quantity of $30 per hour and 8000 hours of gardening services purchased, the economic surplus is O A. the sum of the areas below the demand curve, but above the market-clearing price of $30 - i.e., areas 1, 2, 6. O B. the sum of the areas below the demand curve, up to 8000 hours - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8. O c. the sum of the areas above the supply curve and below the demand curve - i.e., areas 1, 2, 3, 4, 6, 7. O D. the sum of the areas above the supply curve, but below the market-clearing price of $30 - i.e., areas 3, 4, 7. O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9. Price ($ per hour) 70- 60- 50- 40- 30- 20- 10- 1 4 2 3 Supply Demand 5 2000 4000 6000 8000 10000 12000 14000 16000 Quantity (number of hours of gardening service per month) Q

The diagram shows the market for gardening services. At the market-clearing price and quantity of $30 per hour and 8000 hours of gardening services purchased, the economic surplus is O A. the sum of the areas below the demand curve, but above the market-clearing price of $30 - i.e., areas 1, 2, 6. O B. the sum of the areas below the demand curve, up to 8000 hours - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8. O c. the sum of the areas above the supply curve and below the demand curve - i.e., areas 1, 2, 3, 4, 6, 7. O D. the sum of the areas above the supply curve, but below the market-clearing price of $30 - i.e., areas 3, 4, 7. O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9. Price ($ per hour) 70- 60- 50- 40- 30- 20- 10- 1 4 2 3 Supply Demand 5 2000 4000 6000 8000 10000 12000 14000 16000 Quantity (number of hours of gardening service per month) Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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