Assume There Are Three Hardware Stores, Each Willing to Sell

question 17

Multiple Choice

Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot could offer a hammer for a minimum of $7. Lace Hardware could offer a hammer for a minimum of $10. Bob's Hardware could offer a hammer for a minimum of $13.If the market price of hammers increased from $8 to $14, total producer surplus would increase from:

• A) $8 to $14.
• B) $1 to $12.
• C) $14 to $8.
• D) $7 to $30.

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Definitions:

Dateline

A line in a written document or report that gives the date and place of the writing or reporting, often seen in news articles and press releases.

Dictated

Refers to something that is spoken aloud for another person to write down or for a machine to record.

Composed

Being calm and self-possessed; serenity in behavior or attitude.

Identifies

Recognizes or establishes the identity of someone or something, often through analysis or comparison.