MACROECONOMICS (LL) W/CONNECT
21st Edition
ISBN: 9781264197149
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 4, Problem 1RQ
To determine
The impact of increasing supply on consumer surplus .
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Students have asked these similar questions
Draw a supply and demand graph and identify the areas of consumer surplus and producer surplus. Given the demand curve, what impact will an increase in supply have on the amount of consumer surplus shown in your diagram? Explain why.
Consumer surplus is a measure of the difference between:
a) The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve).
b) The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve).
c) The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line).
d) The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).
Which of the following is not a true statement about producer surplus?
Select the correct answer below:
Producer surplus is the benefit producers receive for selling goods in a market.
On a graph, producer surplus is the area between the market price and the segment of the supply curve below the
equilibrium.
Producer surplus is the same as consumer surplus.
Producer surplus is the difference between the amount that suppliers in the market are willing to supply goods for
and the amount they actually receive for those goods.
Chapter 4 Solutions
MACROECONOMICS (LL) W/CONNECT
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Use marginal cost/marginal benefit analysis to...Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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