The diagram shows the market for gardening services. At the market-clearing price and quantity of $30 per hour and 8000 hours of gardening services purchased, the economic surplus is O A. the sum of the areas below the demand curve, but above the market-clearing price of $30 - i.e., areas 1, 2, 6. O B. the sum of the areas below the demand curve, up to 8000 hours - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8. O c. the sum of the areas above the supply curve and below the demand curve - i.e., areas 1, 2, 3, 4, 6, 7. O D. the sum of the areas above the supply curve, but below the market-clearing price of $30 - i.e., areas 3, 4, 7. O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9. Price ($ per hour) 70- 60- 50- 40- 30- 20- 10- 1 4 2 3 Supply Demand 5 2000 4000 6000 8000 10000 12000 14000 16000 Quantity (number of hours of gardening service per month) Q
The diagram shows the market for gardening services. At the market-clearing price and quantity of $30 per hour and 8000 hours of gardening services purchased, the economic surplus is O A. the sum of the areas below the demand curve, but above the market-clearing price of $30 - i.e., areas 1, 2, 6. O B. the sum of the areas below the demand curve, up to 8000 hours - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8. O c. the sum of the areas above the supply curve and below the demand curve - i.e., areas 1, 2, 3, 4, 6, 7. O D. the sum of the areas above the supply curve, but below the market-clearing price of $30 - i.e., areas 3, 4, 7. O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9. Price ($ per hour) 70- 60- 50- 40- 30- 20- 10- 1 4 2 3 Supply Demand 5 2000 4000 6000 8000 10000 12000 14000 16000 Quantity (number of hours of gardening service per month) Q
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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23
![The
diagram shows the market for gardening services.
At the market-clearing price and quantity of $30 per hour and 8000 hours of
gardening services purchased, the economic surplus is
O A. the sum of the areas below the demand curve, but above the
market-clearing price of $30 - i.e., areas 1, 2, 6.
O B. the sum of the areas below the demand curve, up to 8000 hours - i.e.,
areas 1, 2, 3, 4, 5, 6, 7, 8.
O c. the sum of the areas above the supply curve and below the demand
curve - i.e., areas 1, 2, 3, 4, 6, 7.
O D. the sum of the areas above the supply curve, but below the
market-clearing price of $30 - i.e., areas 3, 4, 7.
O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5,
6, 7, 8, 9.
Price ($ per hour)
70-
60-
20-
10-
1
4
2
3
6
8
9
Supply
Demand
5
2000 4000 6000 8000 10000 12000 14000 16000
Quantity (number of hours of gardening service per month)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0f18c60-2b14-4c75-a028-a9713e3a91b4%2F5d4e8498-b933-449e-bdaf-80bfaac9fad5%2F8ccs2fx_processed.png&w=3840&q=75)
Transcribed Image Text:The
diagram shows the market for gardening services.
At the market-clearing price and quantity of $30 per hour and 8000 hours of
gardening services purchased, the economic surplus is
O A. the sum of the areas below the demand curve, but above the
market-clearing price of $30 - i.e., areas 1, 2, 6.
O B. the sum of the areas below the demand curve, up to 8000 hours - i.e.,
areas 1, 2, 3, 4, 5, 6, 7, 8.
O c. the sum of the areas above the supply curve and below the demand
curve - i.e., areas 1, 2, 3, 4, 6, 7.
O D. the sum of the areas above the supply curve, but below the
market-clearing price of $30 - i.e., areas 3, 4, 7.
O E. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5,
6, 7, 8, 9.
Price ($ per hour)
70-
60-
20-
10-
1
4
2
3
6
8
9
Supply
Demand
5
2000 4000 6000 8000 10000 12000 14000 16000
Quantity (number of hours of gardening service per month)
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