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 increased from $9 to $13:
A. producer surplus would increase by $4 for Lace Hardware.
B. producer surplus would increase only for House Depot.
C. producer surplus would increase for each producer.
D. producer surplus would remain unchanged for Bob's Hardware.
Answer: D
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The costs in time and other resources that parties incur in the process of facilitating an exchange of goods and services are called
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In the above figure, the opportunity cost of moving from point A to point C is
A. 50 guitars. B. 50 ukuleles. C. 0 guitars. D. 25 guitars.
Checking account balances are included in
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