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

question 96

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 would be

• A)$2,500.
• B)$900.
• C)$800.
• D)$1,600.

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Definitions:

Integer Models

Mathematical models that express relationships or problems using integers, often used in optimization to find the best solution within constraints.

Projected Revenue

Estimated future income generated from business activities or sales over a specific period.

Price/Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of demand to price changes.

Nonlinear Optimization Models

Mathematical models where the objective function or any of the constraints are nonlinear functions, making the solution process more complex than linear models.