Using the Graph Below, Answer the Following Questions About Hammers

question 149

Essay

Using the graph below, answer the following questions about hammers.
a.What is the equilibrium price of hammers before trade?
b.What is the equilibrium quantity of hammers before trade?
c.What is the price of hammers after trade is allowed?
d.What is the quantity of hammers imported after trade is allowed?
e.What is the amount of consumer surplus before trade?
f. What is the amount of consumer surplus after trade?
g. What is the amount of producer surplus before trade?
h. What is the amount of producer surplus after trade?
i. What is the amount of total surplus before trade?
j. What is the amount of total surplus after trade?
k. What is the change in total surplus because of trade?

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Definitions:

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects, causing an individual to fail to perceive an unexpected stimulus.

Two-Dimensional

Pertaining to a flat surface or plane, having only two dimensions, such as height and width, without depth.

Three Dimensions

Refers to the three aspects or axes of space—length, width, and depth—that define the physical universe or a geometric body.

Structures

The arrangement or interrelation of parts within a system, forming a complex whole or framework.