Question

If the government decreased the restrictions on allowable pollution emission levels, then the supply curve for a chemical manufacturer that emits some air pollutants will O a become flatter O b be become steeper O c shift to the right - O d shift to the left QUESTION 4 Producer surplus is measured as the area O a. below the demand curve and above the market price O b.above the demand curve and below the market price O c above the supply curve and below the market price O d. below the supply curve and above the market price QUESTION S Which of the following is most likely to shift the supply curve for electricity to the right? O a.Consumers becoming more energy conscious O b. An increase in income O c A decrease in the price of coal, an input to producing electricity O d.An decrease in the price of natural gas, a substitute source of energy

Answer 1

If the government decreased the restrictions on allowable pollution emissions level, then the supply curve for a chemical manufacturer that emits some air pollutants will shift to the Right. Since the reduced restriction will enhance production level supply curve will shift right wards.

Producer Surplus is measured as the area c) above the supply curve and below the market price. Producer surplus is difference between what seller wishes to sell product at and the price received.

Supply curve of electricity will shift right most likely due to c) A decrease in the price of coal, an input to producing electricity. Since input cost decreases, supply curve will shift rightwards.