The figure below shows the market for Apples in Northwest Indiana. The letters on the figure correspond to areas. Use this figure to answer the question(s) below. Price Market for Apples S? A B F C G H J D K I L M D? E S? ? Quantity If S? and D? are the current supply & demand curves in the market for apples (i.e. ignore S?) and the market is in equilibrium then which area(s) represent producer surplus? (Check all that apply)
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Aarya B.
Figure 3-8: Price and Quantity Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A). If the price of oranges, a substitute for apples, decreases and the wages of apple workers increase, how will the equilibrium point change? A) The equilibrium point will move from A to E. B) The equilibrium point will move from A to B. C) The equilibrium point will move from A to C. D) The equilibrium will first move from A to B, then return to A. Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B? A) A positive change in the technology used to produce apples and a decrease in the price of oranges, a substitute for apples. B) An increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples. C) An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease. D) A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples.
Jerelyn N.
Refer to the information provided in Figure 4.6 below to answer the questions that follow. Equilibrium in this market occurs at the intersection of curves S and D. Price/unit Figure 4.6 6) In figure 4.6 at equilibrium, consumer surplus is area A) A. B) G. C) E+F+G. D) A+B+C. 7) In figure 4.6 at equilibrium, producer surplus is area A) A+B+C. B) E+F+G. C) G. D) A. 8) In figure 4.6 if price is P1, consumer surplus is area A) A. B) B+C+E+F+G. C) G. D) A+B+E. 9) In figure 4.6 if price is P1, producer surplus is area A) B+E+G. B) A+B+E. C) G. D) A. 10) In figure 4.6 if price is P1, the deadweight loss due to under production is area A) F+G. B) A+C. C) E+G. D) C+F.
Andrew D.
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