Figure 4-4 -Refer to Figure 4-4.The Figure Above Represents the Market for Represents

question 100

Multiple Choice

Figure 4-4

-Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If the price of pecans is $9,

• A)economic surplus is maximized.
• B)too many consumers want to buy pecans.
• C)the quantity supplied is greater than the economically efficient quantity.
• D)the quantity demanded is economically efficient but the quantity supplied is economically inefficient.

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Definitions:

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Willingness To Pay

The maximum amount an individual is prepared to spend to obtain a good or service or to avoid something undesirable.

Consumer Surplus

Consumer surplus is the difference between the maximum price consumers are willing to pay for a product or service and the actual price they pay.

Producer Surplus

Producer Surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, often depicted as the area above the supply curve and below the market price.