Answered: 3.75 %24 2.50 1.50 0 1 2 3 45 6 7 8…

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Economics

3.75 %24 2.50 1.50 0 1 2 3 45 6 7 8 Millions of hamburgers per month | Price ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3)Refer to the diagram below. Which price maximizes the sum of consumer and producer surplus? *

a)$1.50

b)$2.50

c)$3.75

d)Any price greater than $3.75

3.75
2.50
1.50
D
0 1 2 3 4 5 6 7 8
Millions of hamburgers per month |
Price ($)

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