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Question
Microeconomics
Posted 2 months ago

The market for Good XX is shown here.

Which of the following represents the surplus that would result in this market at a price of P3P_{3} ?

Choose 1 answer:
(A) QCQAQ_{C}-Q_{A}
(B) QAQBQ_{A}-Q_{B}
(c) QBQCQ_{B}-Q_{C}
(D) P3P5P_{3}-P_{5}
(द) XQCX-Q_{C}
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Answer from Sia
Posted 2 months ago
Solution
a
Surplus Definition: Surplus in a market occurs when the quantity supplied (QsQ_s) exceeds the quantity demanded (QdQ_d) at a given price level
b
Identifying Quantities: At price P3P_3, the quantity supplied is QCQ_C and the quantity demanded is QAQ_A
c
Calculating Surplus: The surplus at price P3P_3 is the difference between the quantity supplied and the quantity demanded, which is QCQAQ_C - Q_A
Answer
(A) QCQAQ_{C}-Q_{A}
Key Concept
Market Surplus
Explanation
The surplus in the market at a price of P3P_3 is calculated by subtracting the quantity demanded (QAQ_A) from the quantity supplied (QCQ_C).

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