The Figure Below Shows the Supply and Demand Curves for Oranges

question 97

Multiple Choice

The figure below shows the supply and demand curves for oranges in Smallville. When this market is in equilibrium, total economic surplus is ________ per day.

• A)$0
• B)$80
• C)$160
• D)$320

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Definitions:

Barriers to Entry

Factors that prevent or hinder companies from entering a specific market or industry, including high startup costs, strict regulations, and established competition, which can protect existing firms from new entrants.

Artificial Differences

Distinctions created or imposed in a situation or between objects that do not naturally or inherently exist.

Horizontal Differentiation

A strategy where products are made different from those of competitors on aspects other than price, such as quality or features, while aimed at satisfying the same basic need.

Product Mix

The variety of products a company offers for sale to meet market demand and enhance profitability.