The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower (marginal) cost while retaining the same quality. Market for Violins 300 270 a. Use the graph to illustrate the effect that this will have on the supply and demand of beginner-level violins and then answer the following three questions. 240 210 180 b. How much does this new technology increase consumer surplus? 150 120 00 2400 Increase in consumer surplus: $ 30 D. Incorrect 10 20 30 40 50 60 70 80 00 100 Quantity of violins (in thousands)

The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower (marginal) cost while retaining the same quality. Market for Violins 300 270 a. Use the graph to illustrate the effect that this will have on the supply and demand of beginner-level violins and then answer the following three questions. 240 210 180 b. How much does this new technology increase consumer surplus? 150 120 00 2400 Increase in consumer surplus: $ 30 D. Incorrect 10 20 30 40 50 60 70 80 00 100 Quantity of violins (in thousands)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 39P: When someones kidneys fail, the person needs to have medical treatment with a dialysis machine...

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