The impact of producing higher than the equilibrium.

Question

Why is equilibrium the best guideline for pricing a product? A. It is the best way to set the price without knowing the market demand. B. It is the only way to know for certain that you will not end up with a surplus of product. C. It is a number-based agreement between customer and producer to set price versus demand.

Answer 1

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 6QCMC

To determine

The impact of producing higher than the equilibrium.

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Why is equilibrium the best guideline for pricing a product? A. It is the best way to set the price without knowing the market demand. B. It is the only way to know for certain that you will not end up with a surplus of product. C. It is a number-based agreement between customer and producer to set price versus demand.

Choose all statements that are true. A. The supply curve represents the behavior of sellers and the supply curve is a function that shows the quantity supplied at different prices. B. An increase in supply means that sellers are willing to sell more quantity at all prices. C. An increase in supply is seen as a SHIFT of the supply to the RIGHT. D. Producer surplus is the area above the supply curve and below the price. E. A supply curve can be read horizontally or vertically. The horizontal reading tells us how much suppliers are willing and able to sell at each price. The vertical reading tells us the minimum price at which suppliers will sell a given quantity. F. An increase in supply means that sellers are willing to accept a lower price for each quantity

The government extend assistance to business who had been compliant and diligent in paying taxes to the government. This is a big help to the business operations, particularly to their cost of production. How will it affect the pricing decision of these businesses a. Businesses can lower the selling price of their products or service b. Businesses can increase the selling price of their products or services c. Businesses can freeze the price and still can earn profit d. Businesses pricing decisions will not be affected at all A production function measures the relation between a. Input prices and output prices b. Input prices and the quantity of output c. The quantity of inputs and quantity of outputs d. The quantity of inputs and input prices

Answer 2

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 6QCMC

To determine

The impact of producing higher than the equilibrium.

Expert Solution & Answer

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See solution

Check out sample textbook solution

Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 6QCMC

To determine

The impact of producing higher than the equilibrium.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 6QCMC

To determine