Assume There Are Three Hardware Stores in the Market for Hammers

question 45

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 increased from $8 to $14,total producer surplus would:

• A)increase from $8 to $14.
• B)increase from $1 to $12.
• C)decrease from $14 to $8.
• D)increase from $7 to $30.

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Definitions:

Metamorphism

The process by which the mineral composition and structure of rocks are changed by heat and pressure, without melting.

Magma

Molten rock located beneath the earth's surface, which can erupt as lava during a volcanic eruption and solidify to form igneous rocks.

Heat

A form of energy associated with the movement of atoms and molecules in substances.

Deformation

Processes that cause a rock body to change position, orientation, size, or shape, such as by folding, faulting, and shearing.