the quantity of the good supplied decreases by 20 units.
the demand curve shifts to the left; quantity sold is now 30 units and the price is $5.
the price of the good continues to serve as the rationing mechanism.
buyers' total expenditure on the good decreases by $80.
If the price of the product is $130, then who would be willing to purchase the product?
Calvin, Sam, and Andrew
Calvin and Sam
Calvin, Sam, Andrew, and Lori
Suppose your own demand curve for tomatoes slopes downward. Suppose also that, for the last tomato you bought this week, you paid a price exactly equal to your willingness to pay. Then...
you already have bought too many tomatoes this week.
you should buy more tomatoes before the end of the week.
your consumer surplus on all of the tomatoes you have bought this week is zero.
your consumer surplus on the last tomato you bought is zero.
Erin would be willing to pay as much as $100 per week to have her house cleaned. Ernesto's opportunity cost of cleaning Erin's house is $70 per week.
If Erin pays Ernesto $90 to clean her house, Erin's consumer surplus is...
A supply curve can be used to measure producer surplus because it reflects...
the actions of sellers.
the amount that will be purchased by consumers in the market.
Which area represents consumer surplus at a price of P1?
The vertical distance between points A and B represents a tax in the market.
The per-unit burden of the tax on buyers is...