240 220 200 180 160 140+ 120 100 80 60 40+ 20 Demand 5 10 15 20 25 30 35 40 45 50 55 60 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. iii. Consumers entering the market after the price drop, receive $200 in consumer surplus. a. only ii b. ji and iii c. only i d. i and iii

240 220 200 180 160 140+ 120 100 80 60 40+ 20 Demand 5 10 15 20 25 30 35 40 45 50 55 60 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. iii. Consumers entering the market after the price drop, receive $200 in consumer surplus. a. only ii b. ji and iii c. only i d. i and iii

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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