Equilibrium: End of Chapter Problem The diagram that follows shows the market for agricultural products. The shift from the old supply curve to the new supply curve is the result of technological and scientific advances in farming. Calculate the change in consumer surplus and the change in producer surplus caused by these technological advances. Are buyers better or worse off as a result of these advancements? What about sellers? Price per bushel $11 8 5.50 3 3.3 Old supply Demand New supply Quantity (millions of bushels) Change in consumer surplus: $ million Change in producer surplus: $ million Buyers are Sellers are better off. worse off. better off. worse off
Equilibrium: End of Chapter Problem The diagram that follows shows the market for agricultural products. The shift from the old supply curve to the new supply curve is the result of technological and scientific advances in farming. Calculate the change in consumer surplus and the change in producer surplus caused by these technological advances. Are buyers better or worse off as a result of these advancements? What about sellers? Price per bushel $11 8 5.50 3 3.3 Old supply Demand New supply Quantity (millions of bushels) Change in consumer surplus: $ million Change in producer surplus: $ million Buyers are Sellers are better off. worse off. better off. worse off
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Equilibrium: End of Chapter Problem
The diagram that follows shows the market for agricultural products. The shift from the old supply curve to the new supply
curve is the result of technological and scientific advances in farming. Calculate the change in consumer surplus and the change
in producer surplus caused by these technological advances. Are buyers better or worse off as a result of these advancements?
What about sellers?
Price per
bushel
$11
8
5.50
3 3.3
Old
supply
Demand
New
supply
Quantity
(millions of bushels)
Change in consumer surplus: $
million
Change in producer surplus: $
million
Buyers are
Sellers are
better off.
worse off.
better off.
worse off
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