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Question
Microeconomics
Posted about 1 month 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) XQCX-Q_{C}
(B) P3P5P_{3}-P_{5}
(c) QCQAQ_{C}-Q_{A}
(©) QAQBQ_{A}-Q_{B}
() QBQCQ_{B}-Q_{C}
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Answer from Sia
Posted about 1 month ago
Solution
a
Surplus Definition: Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. Producer surplus is the difference between what producers are willing to accept and what they actually receive
b
Surplus at P3P_3: At price P3P_3, the quantity demanded is QcQ_c and the quantity supplied is QaQ_a. The surplus in this market is the difference between these quantities
c
Calculation: The surplus at price P3P_3 is QcQaQ_c - Q_a
Answer
(C) QCQAQ_{C}-Q_{A}
Key Concept
Surplus in a market is the difference between the quantity demanded and the quantity supplied at a given price.
Explanation
At price P3P_3, the quantity demanded (QcQ_c) exceeds the quantity supplied (QaQ_a), resulting in a surplus of QcQaQ_c - Q_a.

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