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Refer to Scenario 7-2 QS=PQ ^ { S } = P

question 43

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Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to
QS=PQ ^ { S } = P How much total consumer surplus goes to new consumers who enter the market after the supply curve shifts?


Definitions:

Centimeter

A unit of length in the metric system, equal to one hundredth of a meter, commonly used to measure small distances or heights.

Inch

A unit of length in the British imperial and United States customary systems, equal to 1/12 foot or 2.54 centimeters.

Metric System

A decimal system of measurement based on meters, liters, and grams as units of length, volume, and weight.

Liter

A metric unit of volume equal to one cubic decimeter or 1000 cubic centimeters, commonly used to measure liquids.

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