7. Producer surplus in the short and long run The following graph shows the supply of (orange curve) and demand for (blue curve) DVD players. Determine the equilibrium price and quantity of DVD players. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. PRICE (Dollars per DVD player) 100 80 60 40 20 0 20 False True Supply Demand 40 60 80 100 QUANTITY (Millions of DVD players) D D CS PS Aa Aa Help Clear All Suppose the preceding graph represents the market for DVD players in the long run. True or False: The area between the price and the supply curve represents the profit firms earn on intramarginal units.
7. Producer surplus in the short and long run The following graph shows the supply of (orange curve) and demand for (blue curve) DVD players. Determine the equilibrium price and quantity of DVD players. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. PRICE (Dollars per DVD player) 100 80 60 40 20 0 20 False True Supply Demand 40 60 80 100 QUANTITY (Millions of DVD players) D D CS PS Aa Aa Help Clear All Suppose the preceding graph represents the market for DVD players in the long run. True or False: The area between the price and the supply curve represents the profit firms earn on intramarginal units.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 3TY
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