Suppose That Last Year the Equilibrium Price and the Quantity

question 124

Multiple Choice

Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds, respectively. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, producer surplus:

• A) increased from $25 million to $42 million.
• B) increased from $12.5 million to $24.5 million.
• C) increased from $3 million to $7 million.
• D) increased from $4.2 million to $5.6 million.

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Definitions:

Developmental Delay

A condition where a child does not reach their developmental milestones at the expected times.

Piaget's Theory

A framework developed by Jean Piaget that outlines stages of cognitive development in children, describing how they construct a mental model of the world.

Own Perspective

An individual's unique viewpoint or attitude towards a particular topic or situation based on personal experience and beliefs.

Freud's Psychoanalytical Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping behavior.