Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 6, Problem 8MC
To determine
The correct reason for the existence of
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Students have asked these similar questions
a. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.
What are the factors that caused the consumer surplus?
Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus?
Select one:
a. they both decrease
b. the equilibrium market price increases, and producer surplus decreases
c. they both increase
d. the equilibrium market price decreases, and producer surplus increases
Chapter 6 Solutions
Managerial Economics: A Problem Solving Approach
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Similar questions
- To economists, the term "consumer surplus" means: Select one: a. the difference between the price a consumer is willing to pay and the price that suppliers are willing to accept. b. the excess money consumers have left over after purchasing goods. c. the consumer's net benefit from trading. d. the difference between the price a consumer is able to pay and willing to pay.arrow_forwardWhich one of the following statements is incorrect?At equilibrium:A. demand is equal to supply.B. the quantity demanded is equal to the quantity supplied.C. there is no excess demand.D. there is no excess supply.E. there is no market surplus.arrow_forwardjarrow_forward
- Using the following information, explain the changes in consumer surplus in the sushi market withdiagrams.a. The price of sushi decreases.b. People are less willing to pay for sushi.arrow_forwardThe table below represents the market for DVDS. The value of consumer surplus is $__________milon (Enter your reaponse as an integer)arrow_forwardWhich of the following is true of any market? a. The interaction of demand and supply determines the price and quantity in that market. b. There must be a supply of the item but not necessarily a demand for the item. c. Demand and supply are always equal for an item. d. There must be a demand for the item but not necessarily a supply of the item. e. The market will always be in equilibriumarrow_forward
- If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.arrow_forwardFor a particular good, a 10 percent increase in price causes a 15 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? A. There are no close substitutes for this good. B. The good is a necessity. C. The market for the good is broadly defined. D. The relevant time horizon is long.arrow_forwardLesson 10 Question 7arrow_forward
- Demand for the desired quantity of a good that is backed by the ability to buy that good is known as: A. Effective Demand B. Derived Demandarrow_forwardCalculate consumer surplus based on a graph or table.arrow_forwardIf the price of a good starts out below the equilibrium price without a price control, then (please choose all the answers that are correct) A. suppliers will supply less, pushing the price down B. consumers will compete to bid the price up C. suppliers will compete to bid the price up D. the market starts with a surplus of supply over demand E. consumers will demand more than the equilibrim quantityarrow_forward
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