### Graph InterpretationThe graph illustrates the intersection of supply and demand curves, which is useful for understanding market equilibrium. - **Axes**: - The vertical axis represents the **Price**. - The horizontal axis represents the **Quantity**.- **Curves**: - The **Supply** curve slopes upward, indicating that as price increases, the quantity supplied increases. - The **Demand** curve slopes downward, showing that as price decreases, the quantity demanded increases.- **Equilibrium**: - The intersection point of the supply and demand curves represents the market equilibrium, where the quantity supplied equals the quantity demanded.- **Dotted Lines**: - Vertical and horizontal dashed lines are drawn to help understand the changes in price and quantity when $ q = 50 $.### Statements to Analyze1. **When $ q=50 $ is traded in the market, total economic surplus is 2625.**2. **The marginal benefit at $ q=50 $ is greater than the marginal benefit at the equilibrium output level.**3. **If $ q=50 $ is traded in the market, the dead-weight loss (DWL) is 845.**4. **If $ q=50 $ is traded in the market, the producer surplus is 2375.**### TaskChoose the incorrect statement from the options provided.

To calculate the surplus, we measure the area. When quantity is less than equilibrium quantity, it…

Price 110 Supply 100 90 80 70 60 Demand 50 45 40 30 + 20 10 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity Choose the wrong statement. When q=50 is traded in the market, total economic surplus is 2625. The marginal benefit at q=50 is greater than the marginal benefit at the equilibrium output level. If q=50 is traded in the market, the dead-weight-less (DWL) is 845. If q=50 is traded in the market, the producer surplus is 2375.

Price 110 Supply 100 90 80 70 60 Demand 50 45 40 30 + 20 10 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity Choose the wrong statement. When q=50 is traded in the market, total economic surplus is 2625. The marginal benefit at q=50 is greater than the marginal benefit at the equilibrium output level. If q=50 is traded in the market, the dead-weight-less (DWL) is 845. If q=50 is traded in the market, the producer surplus is 2375.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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