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240 220 200 180 + 160 + 140 120 100 80 60 - 40 - 20 + Demand 5 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. ii. Consumers entering the market after the price drop, receive $200 in consumer surplus.

240 220 200 180 + 160 + 140 120 100 80 60 - 40 - 20 + Demand 5 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. ii. Consumers entering the market after the price drop, receive $200 in consumer surplus.

Microeconomics
Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter4: Prices: Free, Controlled, And Relative
Section: Chapter Questions
Problem 4WNG
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If the market equilibrium price falls from $120 to $80, then which statement could be true?

240 220 200 180 160 140 120 + 100 80 60 40 20 Demand 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. iii. Consumers entering the market after the price drop, receive $200 in consumer surplus.
Transcribed Image Text:240 220 200 180 160 140 120 + 100 80 60 40 20 Demand 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. iii. Consumers entering the market after the price drop, receive $200 in consumer surplus.
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