-The Figure Illustrates the Market for Bagels

question 30

Multiple Choice

-The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by

• A) $5.00 an hour.
• B) $2.50 an hour.
• C) $7.50 an hour.
• D) $0.50 a bagel.

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Definitions:

Mud Statues

This refers to sculptures made from mud or clay, but in economic terms, it's not a recognized key term.

Workers

Individuals engaged in any form of employment or labor, contributing to the production of goods and services.

Loan

A loan is a sum of money provided by one party to another, under the condition of future repayment with interest, used for personal, business, or financial needs.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit production cost.