Question

28. The following figure illustrates the demand and supply of decorative light bulbs in a perfectly competitive market.




Refer to the figure above. What is the consumer surplus in the market?

a. $100

b. $50

c. $225

d. $75

29. The following figure illustrates the demand and supply of decorative light bulbs in a perfectly competitive market.




Refer to the figure above. What is the producer surplus in the market?

a. $150

b. $50

c. $200

d. $75

31. The following figure illustrates the demand and supply of decorative light bulbs in a perfectly competitive market.




Refer to the figure above. What is the maximum possible social surplus?

a. $225

b. $150

c. $100

d. $375

32. The social surplus in a market is $50. If another economic agent enters the market such that the marginal cost he incurs is $10 and the marginal benefit he receives from the trade is $5, then which of the following statements is true?

a. The social surplus will decrease by $5.

b. The social surplus will increase by $5.

c. The social surplus will increase by $10.

d. The social surplus will remain the same.

Answer 1

28.

Р 25 | cs: Аша ДАВС - АВхо 2 = 10 XIS 1S PS = двор - Вс x 0p I = 10 ХIS - Пs

Answer-D

29.Answer-D

31.TS=CS+PS

TS=75+75=150

Answer-B

32.Surplus for another market=Marginal benefit-Marginal cost.

Total surplus=5-10=-5

Total surplus thus falls by $5

Answer-A