Assume There Are Three Hardware Stores in the Market for Hammers

question 63

Multiple Choice

Assume there are three hardware stores in the market for hammers and that all three markets produce a single,standard model hammer.House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7.Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10.Bob's Hardware store is a family owned and operated,independent hardware store and can offer hammers at a minimum price of $13.
Given the scenario described,if the market price of hammers decreased from $15 to $10:

• A)total producer surplus falls by $5.
• B)producer surplus for each producer falls by $5.
• C)Bob's Hardware no longer sells hammers.
• D)total producer surplus falls by $15.

---

Definitions:

Abortion

The expulsion of an embryo or fetus from the uterus.

African American

A racial or ethnic group in the United States with ancestry from any of the black populations of Africa.

Abortion Rate

The number of abortions carried out during a specific period in a given population, often measured per 1,000 women of childbearing age.

Fertility Drugs

Medications that stimulate the ovaries to produce eggs.