Figure 7-22 -Refer to Figure 7-22.Assume Demand Increases,which Causes the Equilibrium Price

question 39

Multiple Choice

Figure 7-22
-Refer to Figure 7-22.Assume demand increases,which causes the equilibrium price to increase from $50 to $70.The increase in producer surplus to producers already in the market would be

• A)$1,600.
• B)$600.
• C)$800.
• D)$1,200.

---

Definitions:

Straight Line Depreciation

A line that shows a constant decline in the value of something, such as a car that loses the same value each year.

Odometer

A gauge on the dashboard of a car that indicates the distance the car has traveled since it left the factory.

Odometer

A device used in vehicles to measure the distance traveled.

Miles Per Gallon

A measure of fuel efficiency in vehicles, indicating how many miles can be traveled on a single gallon of fuel.