OThe accompanying diagram represents the market for violins.Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower marginal costwhile retaining the same quality. This causes the market supply curve to increase from $1 to $2.a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the newproducer surplus in the market.300270240421018015012090Incorrect.60300010Market for violins20 30 40 50 60 70Quantity of violins (in thousands)Increase in consumer surplus: SIncrease in producer surplus: $IncorrectSIb. How much does this new technology increase consumer surplus?Increase in total surplus: $c. How much does this new technology increase producer surplus?IncorrectS2D80 90 100IncorrectCSPSd. How much does this new technology increase total (or social) surplus?/items/c33159e3-e40a-4... Q

Consumer surplus is the benefit consumers receive by paying less for a good or service than they…

Macmillan Learning The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower marginal cost while retaining the same quality. This causes the market supply curve to increase from $1 to $2. a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new producer surplus in the market. Price per violin 300 270 240 210 180 150 120 Incorrect 30 0 10 Market for violins D 20 30 40 50 60 70 80 90 100 Quantity of violins (in thousands) Increase in consumer surplus: $ Increase in producer surplus: $ b. How much does this new technology increase consumer surplus? Incorrect SI c. How much does this new technology increase producer surplus? Increase in total surplus: $ 52 Incorrect Incorrect CS PS d. How much does this new technology increase total (or social) surplus?

Macmillan Learning The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower marginal cost while retaining the same quality. This causes the market supply curve to increase from $1 to $2. a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new producer surplus in the market. Price per violin 300 270 240 210 180 150 120 Incorrect 30 0 10 Market for violins D 20 30 40 50 60 70 80 90 100 Quantity of violins (in thousands) Increase in consumer surplus: $ Increase in producer surplus: $ b. How much does this new technology increase consumer surplus? Incorrect SI c. How much does this new technology increase producer surplus? Increase in total surplus: $ 52 Incorrect Incorrect CS PS d. How much does this new technology increase total (or social) surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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