Given the scenario described, if the market price of hammers decreased from $15 to $11:
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..
A. total producer surplus would fall by $4.
B. producer surplus for each producer falls by $4.
C. House Depot's producer surplus falls by $4.
D. total producer surplus falls by $8.
C. House Depot's producer surplus falls by $4.
You might also like to view...
Fluctuations in economic activity can result from
A) increases in the price of oil. B) wars. C) the loss of crops due to drought or insects. D) all of the above.
Briefly describe the three most widely followed stock indexes in the United States
What will be an ideal response?
If real gross domestic product is $2,000 billion and aggregate demand is $2,500 billion, unplanned inventory depletion must be taking place
a. True b. False Indicate whether the statement is true or false
What lesson for Chinese economic reform?
a. Economic liberty comes before market institutions b. Authoritarian regimes are good at initiating reforms c. Deng placed economic reforms before political reforms d. China has the one child-family policy. e. All of the above