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A supply curve can be used to measure producer surplus because it reflects

A. the actions of sellers.

B. quantity supplied.

C. sellers' costs.

D. the amount that will be purchased by consumers in the market.

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Hubert Koch
Hubert KochLv2
22 Feb 2020

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Related questions

If the supply of a good is inelastic,
a. producers will not change their quantity supplied by much if the market price doubles.
b. a small increase in price will lead producers to sharply increase their quantity supplied.
c. producers will increase their quantity supplied in response to sharp drops in the
market price.
d. producers have diminishing marginal returns of labor

Efficiency in a market is achieved when the sum of producer surplus and consumer surplus is maximized. Thus, the total surplus:

a. can be used to measure society's well-being.

b. is the sum of consumer and producer surplus.

c. amounts to value to buyers minus cost to sellers.

d. All of the above are correct.

7) Indicate whether each of the following statements is true or false, and explain why.

A. Producer surplus tends to fall as the supply curve becomes more elastic.

B. Consumer surplus tends to rise as demand becomes more elastic.

C. The market demand curve indicates the minimum price buyers are willing to pay at each level of production.

D. The market supply curve indicates the minimum price required by sellers as a group to bring forth production.

E. Consumer surplus is the amount that consumers are willing to pay for a given good or service above and beyond the amount actually paid.

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