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Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040

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BuyFindarrow_forward

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040
Chapter 3.A, Problem 17SQ
Textbook Problem
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As shown in Exhibit A-7, if the market is in equilibrium, _______________ represents producer surplus.

  1. a. ADFB
  2. b. CEFD
  3. c. EGH
  4. d. BEF

To determine

The part that represents the producer surplus.

Explanation of Solution

The producer surplus is the difference between the actual price received by the seller and the minimum price that is accepted in return for the commodity by the seller in the market. The market situation is given as follows:

Option (b):

The price that the seller is willing to sell the commodity is $0, whereas the actual equilibrium market price is $2. The area above the supply curve and below the equilibrium price is the producer surplus and this means that the producer surplus is equal to the area of CEFD. This means that option 'b' is correct...

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Chapter 3 Solutions

Economics For Today
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Ch. 3.A - Suppose Tucker Inc. is willing to sell one gizmo...Ch. 3.A - In an efficient market, deadweight loss is a....Ch. 3.A - Deadweight loss results from a. equilibrium. b....Ch. 3.A - Deadweight loss is the net loss of a. consumer...Ch. 3.A - If the quantity supplied exceeds the quantity...Ch. 3.A - Suppose a consumer is willing to pay 20 for one...Ch. 3.A - Producer surplus measures the value between the...Ch. 3.A - Suppose seller X is willing to sell one good X for...Ch. 3.A - Deadweight loss is the result of a....Ch. 3.A - Deadweight loss is computed as the net of a....Ch. 3.A - Deadweight loss is not the result of a. an...Ch. 3.A - At the equilibrium price, deadweight loss is a....Ch. 3.A - If the quantity demanded exceeds the quantity...Ch. 3.A - As shown in Exhibit A-7, if the market is in...Ch. 3.A - As shown in Exhibit A-7, if the market is in...Ch. 3.A - As shown in Exhibit A-7, if the quantity supplied...Ch. 3.A - As shown in Exhibit A-7, if the quantity supplied...Ch. 3.A - As shown in Exhibit A-7, if the quantity supplied...Ch. 3 - Some people will pay a higher price for brandname...Ch. 3 - Draw graphs to illustrate the difference between a...Ch. 3 - Suppose oil prices rise sharply for years as a...Ch. 3 - Draw graphs to illustrate the difference between a...Ch. 3 - Use supply and demand analysis to explain why the...Ch. 3 - Predict the direction of change for either supply...Ch. 3 - Explain the effect of the following situations: a....Ch. 3 - Explain why the market price may not be the same...Ch. 3 - If a new breakthrough in manufacturing technology...Ch. 3 - The U.S. Postal Service is facing increased...Ch. 3 - There is a shortage of college basketball and...Ch. 3 - Explain the statement People respond to incentives...Ch. 3 - Which of the following causes the demand for...Ch. 3 - Which of the following would not cause market...Ch. 3 - Low-income families consume proportionately more...Ch. 3 - Suppose each of the seven dwarfs buys four mugs of...Ch. 3 - Which of the following increases the supply of...Ch. 3 - With an upward-sloping supply curve, which of the...Ch. 3 - A rightward shift in the demand curve is called...Ch. 3 - A surplus occurs when a. the quantity demanded...Ch. 3 - A shortage occurs when a. the quantity supplied...Ch. 3 - Which of the following decreases supply in the...Ch. 3 - Which of the following results from an increase in...Ch. 3 - There is news that the price of Tuckers Root Beer...Ch. 3 - Which of the following causes a shortage to become...Ch. 3 - Which of the following is true in ski towns such...Ch. 3 - In moving from a shortage toward the market...Ch. 3 - The law of demand is the principle that there is...Ch. 3 - A curve that is derived by summing horizontally...Ch. 3 - A leftward shift in the demand curve is called...Ch. 3 - Under the law of demand, any increase in price...Ch. 3 - The law of supply is the principle that the...Ch. 3 - Exhibit 14 presents supply and demand data for the...Ch. 3 - In Exhibit 14, if the price of video games was...Ch. 3 - In Exhibit 14, at any market price of video games...Ch. 3 - In Exhibit 14, at any market price of video games...Ch. 3 - In Exhibit 14, if there is a shortage of video...

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