If the supply of a good declines, what happens to consumers surplus? Explain your answer and represent

Question:

If the supply of a good declines, what happens to consumers’ surplus? Explain your answer and represent it diagrammatically.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

See More Books

Question Posted: Feb 12, 2016 07:04 AM

See More Questions

Suppose the supply of a good declines. Will total revenue after the decline in supply be greater than, less than, or equal to total revenue before the decline in supply? Explain your answer.
Assume the following information for the demand and supply curves for good Z. a. Draw the corresponding supply and demand curves. b. What are the equilibrium price and quantity traded? c. Would a...
"If the supply of real loan able funds rises, the real money supply must rise." Explain whether you agree or disagree with this statement.
What categories of conflict occurred in this project? At what stage was the project?
Eli Lilly, a major pharmaceutical company, includes the following in its December 31, 2011, balance sheet ($ amounts in millions): Accounts receivable, net of allowances of $110.1......$3,597.7 1....
Design a static data structure (which does not support insertions and deletions) that stores a two-dimensional set S of n points and can answer, in O(log2 n) time, queries of the form...
An expression for the value of $c_{p}$ for carbon dioxide as a function of temperature is \[ c_{p}=286-\frac{1.15 \times 10^{5}}{T}+\frac{2.49 \times 10^{6}}{T^{2}} \] where $c_{p}$ is in...
The following balance sheet is submitted to you for inspection and review. Appalachian Freight Company Balance Sheet December 31, 2011 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . ....
A block slides down a ramp that has a coefficient of kinetic friction of 0.2. The ramp makes an angle of 15 degrees with the horizontal. What is the total force that the block feels if its mass is 3...
Refer to the information in Exercise and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using In Exercise Hemming Co....
What is the difference between a change in demand and a change in quantity demanded? Between a change in supply and a change in quantity supplied?
Suppose demand increases more than supply increases. Represent diagrammatically what happens to equilibrium price and quantity.
The privatization of industries and firms was a feature of the 1980s and early 1990s. The arguments in favour of transferring assets to the private sector were based on the belief that the incentives...
Each part of Figure Q20.12 shows two points near two charges. Compare the electric field strengths $E_{1}$ and $E_{2}$ at these two points. Is $E_{1}>E_{2}, E_{1}=E_{2}$, or \(E_{1}
Terrain analysis. Suppose that a terrain is represented by a two-dimensional grid of elevation values (in meters). A peak is a grid point whose four neighboring cells (left, right, up, and down) have...
Henredon purchases a high-precision programmable router for shaping furniture components for $$190,000.$ It is expected to last 12 years and have a salvage value of $$5,000.$ It will produce...
A currently owned shredder used in a refuse-powered electrical generating plant has a present net realizable value of $$210,000$ and is expected to have a market value of $$10,000$ after 4 years....
Among all monthly bills from a certain credit card company, the mean amount billed was $\$ 485$ and the standard deviation was $\$ 300$. In addition, for $15 \%$ of the bills, the amount billed...
Find, if possible, AB and BA. If it is not possible, explain why. A = [138] B = 5 7
C- Consider the following scenario:- A supermarket needs to develop the following software to encourage regular customers. For this, the customer needs to supply his/her residence address, telephone...
What is exclusive dealing? What are tying contracts?
Total industry sales are $105 million. The top four firms account for sales of $10 million, $9 million, $8 million and $5 million, respectively. What is the four-firm concentration ratio?
How can a farmer protect himself against price variability using a futures contract?
State the dividend irrelevance proposition. What are the assumptions behind this proposition? Explain why this proposition does not hold in the real world. (20 marks)
How many monthly withdrawals of $1,400 will an investment of $75,000 sustain if the first withdrawal is made 12 months from now and the money earns 8.4% compounded monthly
1. You buy a bond with 3 years left to maturity and a yield to maturity of 6% for $920. After 1 year you receive a coupon payment of $30 and sell the bond for $940. What was your rate of return on...

If the supply of a good declines, what happens to consumers surplus? Explain your answer and represent

Question:

Step by Step Answer:

Initially consumer surplus is equal to the ...View the full answer

Economics

Students also viewed these Economics questions