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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:### Graph Interpretation
The 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 Analyze
1. **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.**
### Task
Choose the incorrect statement from the options provided.
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