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. Consumer surplus from wool equals and the producer surplus from wool equals s The market for wool is efficient because O A. at the market equilibrium marginal benefit equals marginal cost, and total surplus is maximized O B. the market is producing the maximum possible quantity given the constraints on technology and capital OC. consumer surplus is greater than producer surplus O D. consumer surplus is greater than zero 10.00 9.00 8.00- 7.00- 6.00- 5.00 4.00- Price (dollars per pound) 1.00- 3.00 3.00+ 2.00- 0.00+ 0 10 D s 20 30 40 Quantity (pounds per day) >>> Draw only the objects specified in the question. 50 60 70 Q

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. Consumer surplus from wool equals and the producer surplus from wool equals s The market for wool is efficient because O A. at the market equilibrium marginal benefit equals marginal cost, and total surplus is maximized O B. the market is producing the maximum possible quantity given the constraints on technology and capital OC. consumer surplus is greater than producer surplus O D. consumer surplus is greater than zero 10.00 9.00 8.00- 7.00- 6.00- 5.00 4.00- Price (dollars per pound) 1.00- 3.00 3.00+ 2.00- 0.00+ 0 10 D s 20 30 40 Quantity (pounds per day) >>> Draw only the objects specified in the question. 50 60 70 Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
Consumer surplus from wool equals and the producer surplus from wool equals $
The market for wool is efficient because_________
O A. at the market equilibrium marginal benefit equals marginal cost, and total surplus is
maximized
O B. the market is producing the maximum possible quantity given the constraints on technology
and capital
O C. consumer surplus is greater than producer surplus
O D. consumer surplus is greater than zero
10.00-
9.00-
8.00-
7.00-
6.00-
5.00
4.00
3.00
2.00-
1.00
Price (dollars per pound)
3.00
0.00+
0
10 20 30
D
S
60 70
40
50
Quantity (pounds per day)
>>> Draw only the objects specified in the question.

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