Question

If equilibrium quantity is 10 and equilibrium price is 8, and the maximum someone is willing...

If equilibrium quantity is 10 and equilibrium price is 8, and the maximum someone is willing to pay is 20:

(2 marks each)

  1. Draw a graph showing which area is consumer surplus

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  1. Calculate the consumer surplus.

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  1. What is consumer surplus in your own words?

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  1. Define producer surplus in your own words?

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  1. How do you know if a market is efficient?

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       CHAPTER 9: Demand & Supply

  1. Describe how the invisible hand works:

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