Edit View History Bookmarks Window Help 58% Microeconomics-2 Quiz: Q This Questi

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Edit View History Bookmarks Window Help 58% Microeconomics-2 Quiz: Q This Question: 1 pt Dylon Dishman&1 9/18/18 8:1 Time Remaining: 0052:27 Subm This O 6 of 9 (5 complete Question Help Consider the market for eggs ilustrated in the figure to the right. Suppose the market is perfecty competitive and initialy in equilbrium at a price of 5 cents and a quantiye 50 (thousand). f the price were 3 cents instead of 5 cents, then consumer surplus would O A. decrease by areas B and F O B. decrease by area B O C. increase by areas C and F O D. increase by area C and decrease by area E O E increase by area C In turn, producer surplus would O A increase by areas C and F O B. increase by area B Cick to select your answer MacBook Pr

Explanation / Answer

Q1. Option D. As the price decreases the consumer surplus increases by area C whereas for reduced supply the CS decreases by area E

Q2. Option C. For the decreased the producer surplus decreases by area C and F

Q3. Option D. Area of E and F

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