111 Domestic Demand Domestic Supply 57 World Price 33 200 360 520 QUANTITY (Tricydes) Refer to Figure 9-2. The increase in total surplus resulting from trade is O a. $7,680, since consumer surplus increases by $9,216 and producer surplus falls by $1,536. O b. $23,280, since consumer surplus increases by $34,920 and producer surplus falls by $11,640. O c. $1,920, since consumer surplus increases by $2,688 and producer surplus falls by $768. O d. $3,840, since consumer surplus increases by $10,560 and producer surplus falls by $6,720. PRICE (Dollars per tricycle)

111 Domestic Demand Domestic Supply 57 World Price 33 200 360 520 QUANTITY (Tricydes) Refer to Figure 9-2. The increase in total surplus resulting from trade is O a. $7,680, since consumer surplus increases by $9,216 and producer surplus falls by $1,536. O b. $23,280, since consumer surplus increases by $34,920 and producer surplus falls by $11,640. O c. $1,920, since consumer surplus increases by $2,688 and producer surplus falls by $768. O d. $3,840, since consumer surplus increases by $10,560 and producer surplus falls by $6,720. PRICE (Dollars per tricycle)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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10
US Mkt. for single family homes. The changes in the price lumber affects supply/demand of single family homes because ______________________________. On the graph: (1) Show the effect of the change in the price of lumber. (2) Show consumer surplus (CS0) and producer surplus (PS0) before the imposition of tariffs; (3) Show consumer surplus (CS1) and producer surplus (PS1) after the imposition of tariffs; (4) With up/down arrows, indicate the changes in equilibrium price___, equilibrium quantity____, consumer surplus_____, producer surplus_______. In the US market for single-family homes 1. Label clearly the supply and demand curves, S and D. (10%) 2. In the text, indicate clearly what side of the market is affected, supply or demand, by underlining or circling the relevant term. (20%) 3. In the text, indicate clearly by filling in the space provided, the connection between the markets. Why does the change in the price or quantity of one good affect demand or supply of another good…
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