Refer to Scenario 7-2 $$Q ^ { S } = P$$

question 188

Essay

Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to
$$Q ^ { S } = P$$ By how much does total consumer surplus increase for those consumers who were already willing to purchase the good with the original supply curve?

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities.

Management Fees

Charges levied by an investment manager for managing an investment fund's holdings.

Closed-end Funds

Investment funds with a fixed number of shares, traded on stock exchanges, potentially at prices above or below their net asset values.

Open-end Funds

Mutual funds that continuously issue new shares to investors and buy back shares when investors wish to sell, with prices determined by the net asset value.