Assume the Market Is in Equilibrium in the Graph Shown

question 121

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and 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) Consumer surplus increases by $5.
• B) Consumer surplus decreases by $5.
• C) Consumer surplus increases by $9.
• D) Consumer surplus decreases by $9.

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Definitions:

Native-born American Families

Native-born American families are those whose members were born in the United States, distinguishing them from families that have immigrated and became naturalized citizens.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Rise in Suicides

An increase in the number of individuals intentionally causing their own death.

Percent

A part or other object per hundred, used to indicate a proportion out of one hundred in fractions or rates.