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sarasmith06 sarasmith06
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A year ago


Short description: A graph plots quantity in the number of hours gardening service per month against price in dollars per month. Long description: The horizontal axis representing quantity in the number of hours of gardening service per month ranges from 1000 to 8000, in increments of 1000. The vertical axis representing price in dollars per hour ranges from 10 to 70, in increments of 10. The graph plots two lines. An increasing line representing supply begins at (0, 0) and passes through the following points: (2000, 15), (4000, 30), (6000, 45), and (8000, 60). A decreasing line representing demand passes through the following points: (0, 70), (2000, 50), (4000, 30), (5000, 20), and (6500, 5). Vertical and horizontal dashed lines are drawn from the points, (2000, 50) and (4000, 30) to meet the axes. The region within the vertices, (0, 70), (0, 50), and (2000, 50) is numbered 1. The region within the vertices, (0, 30), (0, 50), (2000, 50), and (2000, 30) is numbered 2. The region within the vertices, (0, 15), (0, 30), (2000, 30), and (2000, 15) is numbered 3. The region within the vertices, (0, 0), (0, 15), and (2000, 15) is numbered 4. The region within the vertices, (0, 0), (2000, 0), and (2000, 15) is numbered 5. The region within the vertices, (2000, 30), (2000, 50), and (4000, 30) is numbered 6. The region within the vertices, (2000, 15), (2000, 30), and (4000, 30) is numbered 7. The region within the vertices, (2000, 0), (2000, 15), (4000, 0), and (4000, 30) is numbered 8. The region to the right of the vertices, (4000, 0) and (4000, 30) is numbered 9. Note: all values are approximate.

FIGURE 5-5

Refer to Figure 5-5. At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services, we can say that



▸ economic surplus could be increased at a higher price because firms would generate more revenue.

▸ economic surplus could be increased at a lower price because there would be more value to consumers.

▸ the market is inefficient because there are some consumers who are not purchasing at this price.

▸ economic surplus is maximized and the market is efficient.

▸ the market is efficient because the government has imposed a market-clearing price and quantity.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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isaw09isaw09
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sarasmith06 Author
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A year ago
this is exactly what I needed
jmendoza
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Yesterday
Brilliant ツ
larrybrads
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2 hours ago
Thanks for your help!!
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