Podcast
Questions and Answers
What is the equilibrium price in the supply and demand graph shown in Figure 7-14?
What is the equilibrium price in the supply and demand graph shown in Figure 7-14?
- $110
- $90
- $120
- $100 (correct)
At the point of equilibrium in Figure 7-14, what approximate quantity is produced?
At the point of equilibrium in Figure 7-14, what approximate quantity is produced?
- 14 (correct)
- 10
- 12
- 16
What area does the producer surplus represent on the supply and demand graph?
What area does the producer surplus represent on the supply and demand graph?
- The area below the supply curve and above the equilibrium price (correct)
- The area between the supply and demand curves
- The area above the demand curve
- The area below the demand curve and above the equilibrium price
If the price were set at $90 instead of the equilibrium price of $100, what would happen to producer surplus?
If the price were set at $90 instead of the equilibrium price of $100, what would happen to producer surplus?
What value represents producer surplus at the equilibrium price in Figure 7-14?
What value represents producer surplus at the equilibrium price in Figure 7-14?
Flashcards
Equilibrium Price
Equilibrium Price
The price at which quantity supplied equals quantity demanded.
Producer Surplus
Producer Surplus
The difference between the price a producer receives and the minimum price they are willing to accept.
Figure 7-14
Figure 7-14
A supply and demand graph showing market equilibrium.
Equilibrium Price in Figure 7-14
Equilibrium Price in Figure 7-14
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Correct Producer Surplus Calculation-Figure 7-14
Correct Producer Surplus Calculation-Figure 7-14
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Study Notes
Producer Surplus at Equilibrium
- At the equilibrium price, the producer surplus is $450.
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Description
Test your knowledge of equilibrium price and producer surplus using Figure 7-14. This quiz covers key concepts such as the equilibrium quantity, effects of price changes on producer surplus, and how to identify areas in supply and demand graphs. Perfect for economics students looking to reinforce their understanding.
