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.

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Definitions:

Bushels of Corn

A unit of measurement used in agriculture, particularly in the United States, to quantify volumes of corn production and trade.

Opportunity Cost

The price paid for not choosing the next most favorable option when a decision is made.

Absolute Advantage

A situation in which a person or economy can produce more of a good with the same amount of resources as someone else.

Inputs

Resources such as labor, raw materials, and capital that are used in the production process to create goods or services.