Assume the Market Is in Equilibrium in the Graph Shown

question 37

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S1 (at a quantity of 5) .If the supply curve shifts to S2,and a new equilibrium is reached (at a quantity of 7) ,which of the following is true?

• A) Total surplus increases by $12.50.
• B) Total surplus decreases by $12.50.
• C) Total surplus increases by $15.50.
• D) Total surplus decreases by $15.50.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.