Assume There Are Three Bakeries, Each Willing to Sell One

question 45

Multiple Choice

Assume there are three bakeries, each willing to sell one dozen cupcakes in a given time period. The Sweet Treat can offer a dozen cupcakes for a minimum of $6. The Cake Corner can offer a dozen cupcakes for a minimum of $9. Pastry Place can offer a dozen cupcakes for a minimum of $13.If the market price of one dozen cupcakes increased from $7 to $10:

• A) total surplus would decrease by $5.
• B) Pastry Place's producer surplus would decrease by $3.
• C) total surplus would increase by $4.
• D) The Cake Corner's surplus would increase by $3.

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Definitions:

Umbilicus

The medical term for the navel or belly button, which marks the area where the umbilical cord was attached.

Abdominal Subcutaneous

Refers to the injection or placement of substances into the subcutaneous layer in the abdominal area, often used for consistent absorption of medications.

Zone

An area or stretch of land having a particular characteristic, purpose, or use, or subject to particular restrictions.

Common Diluents

Substances used to dilute a drug or agent, reducing its concentration without affecting its therapeutic action.