question
What will be the quantity demanded if the price is set at P1?
answer
Q3
question
Which of the following is most likely to occur when a competitive market moves from one equilibrium to another?
answer
A decrease in demand decreases equilibrium price, quantity, and producer surplus.
question
If the price goes from P2 to P1, ceteris paribus, what area represents the lost producer surplus?
answer
C + F
question
When market equilibrium shifts, which of the following statements is true about the impact on economic surplus?
answer
Its changes depend on the elasticities of supply and demand.
question
An increase in equilibrium price, equilibrium quantity, and producer surplus could be the result of
answer
an increase in demand
question
Which statement is true about a decrease, or leftward shift, in the market demand curve?
answer
The more elastic the demand curve, the less of a reduction to consumer surplus.
question
Which of the following would lead to a market surplus?
answer
(NOT) A quantity demanded of Q3
(NOT) A quantity demanded of Q2
(NOT) A price of P2
(NOT) A quantity demanded of Q2
(NOT) A price of P2
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