I am trying to do my homework problem for econ 101 to find the increase in total consumer surplus and producer surplus and the increase in total surplus. May you please give answers to this problem even though I feel like I am doing everything right? I am attaching the problem that I have gotten wrong that I am doing on achieve. Ⓒ Macmillan LearningThe accompanying diagram represents the market for violins.Suppose that a new technology allows beginner-level violinproducers to make violins at a substantially lower (marginal)cost while retaining the same quality.a. Use the graph to illustrate the effect that this will have onthe supply and demand of beginner-level violins and thenanswer the following three questions.b. How much does this new technology increase consumersurplus?Increase in consumer surplus: $Increase in producer surplus: $c. How much does this new technology increase producersurplus?IncorrectIncrease in total surplus: $10501050Incorrectd. How much does this new technology increase total (orsocial) surplus?2100Incorrect3002702402101801501209060300010Market for Violins20 30 40 50 60 70Quantity of violins (in thousands)$D80 90100

Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Answered: The accompanying diagram represents the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Concept explainers

Question

I am trying to do my homework problem for econ 101 to find the increase in total consumer surplus and producer surplus and the increase in total surplus. May you please give answers to this problem even though I feel like I am doing everything right? I am attaching the problem that I have gotten wrong that I am doing on achieve.

Ⓒ 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.
a. Use the graph to illustrate the effect that this will have on
the supply and demand of beginner-level violins and then
answer the following three questions.
b. How much does this new technology increase consumer
surplus?
Increase in consumer surplus: $
Increase in producer surplus: $
c. How much does this new technology increase producer
surplus?
Incorrect
Increase in total surplus: $
1050
1050
Incorrect
d. How much does this new technology increase total (or
social) surplus?
2100
Incorrect
300
270
240
210
180
150
120
90
60
30
0
0
10
Market for Violins
20 30 40 50 60 70
Quantity of violins (in thousands)
$
D
80 90
100

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions