Assume There Are Three Hardware Stores,each Willing to Sell One

question 62

Multiple Choice

Assume there are three hardware stores,each willing to sell one standard model hammer in a given time period.House Depot can offer their hammer for a minimum of $7.Lace Hardware can offer the hammer for a minimum of $10.Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described,if the market price of hammers decreased from $17 to $12:

• A) producer participation in the market would increase.
• B) producer participation in the market would decrease.
• C) producer participation in the market would not be affected.
• D) total producer surplus would remain unchanged.

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Definitions:

Legacy

Something transmitted by or received from an ancestor or predecessor or from the past.

Sense Of Normalcy

The feeling or perception that one's life, conditions, or situation are normal or typical.

Changes

The process or state of undergoing a transformation or modification from one state, condition, or phase to another.

Deceased's Possessions

Items and property that belonged to a person who has passed away.