Consider the market shown in the figure. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S1. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S2. By how much does consumer surplus decrease? A 1000 B 2000 C 1500 D 3000 1

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter3: Demand, Supply, And The Market Process
Section: Chapter Questions
Problem 6CQ
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Consider the market shown in the figure.
Compute the consumer surplus at the equilibrium
price and quantity when the market is denoted by
D1 and S1. Compute the consumer surplus at the
equilibrium price and quantity when the market is
denoted by D1 and S2. By how much does
consumer surplus decrease?
A 1000
B 2000
с
D
1500
3000
13
M
4
M
P
wi
Transcribed Image Text:Consider the market shown in the figure. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S1. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S2. By how much does consumer surplus decrease? A 1000 B 2000 с D 1500 3000 13 M 4 M P wi
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