Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached, which of the following is true?
A. Consumer surplus increases, but producer surplus decreases.
B. Consumer surplus decreases, but producer surplus increases.
C. Both consumer and producer surplus increase.
D. Both consumer and producer surplus decrease.
C. Both consumer and producer surplus increase.
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Trade will be beneficial for a nation with a comparative advantage in producing a certain product
Indicate whether the statement is true or false
A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and a depreciation of the dollar
Indicate whether the statement is true or false
Which of the following combinations would unambiguously decrease the supply of money? a. The Fed pays a lower interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate. c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities. d. None of the above would unambiguously decrease the supply of money.
Daisy incurs $7,200 per month in fixed costs operating her floral shop. She pays her employees $9.00 per hour and has three assistants, each working 120 hours per month. Her other variable costs are $800 per month. What are Daisy's total variable costs and total costs each month?
a. Total variable costs are $800; total costs are $8,000. b. Total variable costs are $800; total costs are $11,240. c. Total variable costs are $3,240; total costs are $11,240. d. Total variable costs are $4,040; total costs are $11,240.