The graph shows the market for wool. Draw a shape that represents the consumer surplus from wool. Label it CS. Draw a shape that represents the producer surplus from wool. Label it PS. and the producer surplus from wool Consumer surplus from wool equals $ equals $ The market for wool is efficient because OA. consumer surplus is greater than zero OB. the market is producing the maximum possible quantity given the constraints on technology and capital OC. at the market equilibrium marginal benefit equals marginal cost, and total surplus is maximized OD. consumer surplus is greater than producer surplus 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00 0 Price (dollars per pound) 3.00 20 >>> Draw D 60 80 100 40 Quantity (pounds per day) the specified i S 120 140 the question.
The graph shows the market for wool. Draw a shape that represents the consumer surplus from wool. Label it CS. Draw a shape that represents the producer surplus from wool. Label it PS. and the producer surplus from wool Consumer surplus from wool equals $ equals $ The market for wool is efficient because OA. consumer surplus is greater than zero OB. the market is producing the maximum possible quantity given the constraints on technology and capital OC. at the market equilibrium marginal benefit equals marginal cost, and total surplus is maximized OD. consumer surplus is greater than producer surplus 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00 0 Price (dollars per pound) 3.00 20 >>> Draw D 60 80 100 40 Quantity (pounds per day) the specified i S 120 140 the question.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The graph shows the market for wool.
Draw a shape that represents the consumer surplus from wool. Label it CS.
Draw a shape that represents the producer surplus from wool. Label it PS.
and the producer surplus from wool
Consumer surplus from wool equals $
equals $
The market for wool is efficient because
OA. consumer surplus is greater than zero
OB. the market is producing the maximum possible quantity given the
constraints on technology and capital
OC. at the market equilibrium marginal benefit equals marginal cost, and total
surplus is maximized
OD. consumer surplus is greater than producer surplus
10.00
9.00-
8.00-
7.00-
6.00-
5.00-
4.00-
3.00-
2.00-
1.00-
0.00-
0
Price (dollars per pound)
3.00
20
>>> Draw
D
40
60
80 100
Quantity (pounds per day)
the
S
120 140
specified in the question.
Q
Q
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