Prike (dollars per laptop) Si So Quantity (millions of laptops per year) The abo

Question

Prike (dollars per laptop) Si So Quantity (millions of laptops per year) The above figure shows the market for laptops. Which of the following shifts the supply curve from s to S,? Select one: a. a decrease in the price of laptops b. an increase in the price of laptops O c, an increase in the productivity of the workers manufacturing laptops d, an increase in the cost of hard drives e, an increase in the number of laptop manufactures and sellers Price (dollars per bushel of corn) S2 Quantity (millions of bushels of corn per year) The above figure illustrates the market for corn. If point a" represents the original equilibrium and point b" the new equilibrium, which of the following could have caused the change? Select one: a. an improvement in the technology of producing corn b. an increase in consumers' preferences for corn c, an increase in labor costs of producing corn o d. an increase in consumers' income if corn is an inferior good O e. an increase in consumers' income if corn is a normal good

Explanation / Answer

Answer.)

Q1.) D.) An increase in the cost of hard drives

An increase in the price of input shift supply curve leftward.

Q2.) A.) An improvement in the technology of producing corn

Improvement in technology of production improves the supply curve.

Q3.) B.) Marginal Benefit (Utility) Curve

Q4.) D.) Below the demand curve and above the market price

Consumer surplus is the area above the market price and below demand curve.

Q5.) E.) Decreases ; Increases.

Since consumer surplus is the area above the market price and below demand curve, therefore, increase in price level decreases consumer surplus and vice-versa.

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