Asked by Joseph Bartmann on May 18, 2024
Verified
(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Diane sells _____ pumpkins,and her producer surplus is _____.
A) four;$11
B) three;$8
C) two;$6
D) one;$4
Equilibrium Price
The cost at which the amount of a product available matches the amount of the product sought after.
Equilibrium Quantity
The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance each other.
Pumpkin Market
A conceptual or specific market used as an example, often to illustrate seasonal or niche market dynamics.
- Identify the point of equilibrium for both quantity and price in a marketplace.
- Comprehend the notion of producer surplus and its response to shifts in the market.
Verified Answer
Learning Objectives
- Identify the point of equilibrium for both quantity and price in a marketplace.
- Comprehend the notion of producer surplus and its response to shifts in the market.
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