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

question 120

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 due to new producers entering the market would be

• A)$400.
• B)$800.
• C)$1,200.
• D)$900.

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Definitions:

Premiums

Extra payments required for insurance coverage or additional costs added to the usual price of services or goods, often in exchange for higher quality or added benefits.

Fast Moving Products

Products that are sold quickly and in large volumes, often requiring frequent restocking.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas at the same time.

Intermediary Cooperation

The collaboration between intermediaries such as brokers, agents, or distributors in the sales or distribution process of products or services.