9 of 13 Figure 3-8 Price 53) Refer to Figure 3-8. The graph in this fEigure illu
ID: 1206352 • Letter: 9
Question
9 of 13 Figure 3-8 Price 53) Refer to Figure 3-8. The graph in this fEigure illustrabes an initial coenpedsive eguilbrium in the market for apples at the intensection of D and S1 (point A). If the price of eranges, a substihute for apples, decreases and the wages of apple workers increase, how will the eqibem poict change A) The equilibrium point will move from A to E B) The equilibrium will first move from A to B, then returm to A C) The eguilibrium point will move (rom A to D) The equilibrium point will move from A to C S4) Lucinda buys a new CPS systen for $250. She receives consumer surplus of $73 from the purchase How mach does Lacinda value her GPS system A) $75 B) S175 $250 D $325 D) $325 55) Consumers are willing to parchase a product up to the point whene A) the marginal benefit of consuming a product is equal to ils price B) the marginal benefit of consuming the product equals the area below the supply curve and above the market price C) the marginal benefit of consuming the product is equal to the marginalco D) the consumer surplus is equal to the producer surplus. of consuming itExplanation / Answer
53.
The correct option is (D).
A decrease in price of substitute good will result in increase in demand for substitute good. Thus, the demand for original good will decrease which will result in decrease in equilibrium price.
54.
The correct option is (D).
The value of the GPS system = $250 + $75 = $325.
55.
The correct option is (A).
Rational people think about the marginal benefit for the price paid.
57.
The correct option is (D).
Consumer surplus is arrived at a point where the price a consumer actually pays is less than they are prepared to pay.
58.
The correct option is (C).
Producer surplus is the price that point when the price producers receive in the market is more than the minimum they would be prepared to supply for.
59.
The given statement is true.
Marginal cost is the additional cot incurred for producing an additional unit.
60.
The correct option is (A).
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