which statements are trueSuppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice shifted to theThe particular price that results in quantity supplied being equal to quantity demanded is the best price for consumers because it maximizes consumer surplus.The willingness to pay is the maximum amount that a buyer will pay for a good.Dora visits a clothing store to buy new dress suit. She is willing to pay $100 for the suit, but buys one on sale for $75. Dora's consumer surplus from the purchase is $75.If production technology improves in the shoe industry, consumer surplus for shoe buyers will increase because the rightward shift of supply caused the price to fall.Suppose that the equilibrium price in the market for heating oil is $3.50 per gallon. If a law imposed a price ceiling on the market and reduced the maximum legal price for heating oil to $3.00 per gallon then any possible decrease in producer surplus would be smaller than the gain of consumer surplus.A result of welfare economics is that the price of a product is considered to be the best price because it maximizes total surplus.A seller would be willing to sell a product only if the price received is less than the cost of production.Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, any possible increase in producer surplus would be smaller than the loss of consumer surplus.In a market, for any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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which statements are true

Suppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice shifted to the
The particular price that results in quantity supplied being equal to quantity demanded is the best price for consumers because it maximizes consumer surplus.
The willingness to pay is the maximum amount that a buyer will pay for a good.
Dora visits a clothing store to buy new dress suit. She is willing to pay $100 for the suit, but buys one on sale for $75. Dora's consumer surplus from the purchase is $75.
If production technology improves in the shoe industry, consumer surplus for shoe buyers will increase because the rightward shift of supply caused the price to fall.
Suppose that the equilibrium price in the market for heating oil is $3.50 per gallon. If a law imposed a price ceiling on the market and reduced the maximum legal price for heating oil to $3.00 per gallon then any possible decrease in producer surplus would be smaller than the gain of consumer surplus.
A result of welfare economics is that the price of a product is considered to be the best price because it maximizes total surplus.
A seller would be willing to sell a product only if the price received is less than the cost of production.
Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, any possible increase in producer surplus would be smaller than the loss of consumer surplus.
In a market, for any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

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