When a Competitive Market Is Controlled by a Monopolist,part of Consumer

question 100

Essay

When a competitive market is controlled by a monopolist,part of consumer surplus gets transferred to producer surplus.Show this area on a graph.

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Definitions:

Excess Supply

Excess supply, also known as surplus, occurs when the quantity of a good or service offered for sale exceeds the quantity demanded at the current price.

Market Equilibrium

The condition in which the quantity of a good supplied is equal to the quantity demanded, resulting in no economic pressure to change the price or quantity.

Unregulated Market

A market where there is no governmental control or interference in the transactions between buyers and sellers.

Quantity Supplied

The volume of goods or services that suppliers can and are prepared to dispatch in the market at a particular price point within a defined duration.