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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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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