Question

An article in the Wal Street Joumal discussed research at Ohio Stete University that may lead to producing carbon back an important input in automobile tire making-out of eggshe is, tomato skins, and other food waste. According to the article, this research could lead to a reduction in the cost of producing tires. Market for Tires Sx Source: Daniel Akst, "Making Tire Filer from Eggshells" Wel Street Journal, March 9, 2017 Refer to the graph at right, and the shaded areas designated by letters A through N. Assume that S, is the initial supply curve. a. These falling costs result in a consumer surplus in the market for tires represented by areas OA, A,B,C,D,E,F,G. So B. A,B, C OD. A, B, C, D, E, F, G, H, I b. These fal ing costs result in a loss of producer surplus equa to areas Quantity O C. D. E, F. G, H.I There is a gain of producer surplus equal to areas B. F. G, H, I, J, K. OD. K, L M The actual net change in producer surplus A. positive. OB· is negative. depends on the actual sze of the loss and gain. C.