Asked by Salli Braswell on May 11, 2024
Verified
If the price is above the equilibrium price in the market for grapefruit,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus:
A) will be greater than if price were at equilibrium.
B) will be less than if price were at equilibrium.
C) will be the same as if price were at equilibrium.
D) may be different than if price were at equilibrium,but we cannot determine this without more information.
Positively Sloped
Describes a line or curve on a graph that moves upward as it goes from left to right, indicating a positive relationship between two variables.
Negatively Sloped
Refers to a downward inclination of a line or curve on a graph, indicating an inverse relationship between two variables.
Total Surplus
The total net benefit to society from the production and consumption of a good, equal to the sum of consumer surplus and producer surplus.
- Comprehend the impact of price regulations on market surplus.
- Compute the aggregate, consumer, and producer surplus from specified market situations.
Verified Answer
Learning Objectives
- Comprehend the impact of price regulations on market surplus.
- Compute the aggregate, consumer, and producer surplus from specified market situations.
Related questions
(Figure: Consumer and Producer Surplus)Look at the Figure Consumer and ...
(Table: Pumpkin Market)There Are Two Consumers,Andy and Ben,in the Market ...
(Table: Pumpkin Market)There Are Two Consumers,Andy and Ben,in the Market ...
If the Price Is Below the Equilibrium Price in the ...
(Figure: Consumer and Producer Surplus)Look at the Figure Consumer and ...