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:

Fixed Incomes

Earnings from investments that provide a set return, such as bonds or dividends from stocks.

Inflation

Economic situation characterized by rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.

Consumer Price Index (CPI)

Measurement of the monthly average change in prices of goods and services.

Energy And Food Prices

The costs associated with obtaining and consuming energy resources and food commodities, which can significantly impact economic conditions and living standards.