Top Posters
Since Sunday
g
3
2
2
H
2
1
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
sam3359 sam3359
wrote...
Go to Answer
Posts: 152
Rep: 0 0
2 years ago

The diagram below shows supply, demand, and quantity exchanged of Monday matinee movie tickets. Assume it is a perfectly competitive market.

Short description: A graph plots quantity against price in dollars. Long description: The horizontal axis representing quantity ranges from 0 to 100, in increments of 10. The vertical axis representing price (dollars) ranges from 0 to 10, in increments of 1. The graph plots two lines. The line representing S passes through the following points: (0, 0), (25, 2.50), (50, 5), (75, 7.50), and (100, 10). The line representing D passes through the following points: (0, 10), (25, 7.50), (50, 5), (75, 2.50), and (100, 0). The two lines intersect at the point (50, 5). Three vertical dashed lines are drawn from 25, 50, and 75 to meet the line, D. Three horizontal dashed lines are drawn from 2.5, 5, and 7.5 to meet the line, D. Note: All values are approximate.

FIGURE 12-4

Refer to Figure 12-4. If a disequilibrium price of $7.50 per movie ticket were imposed on this market, this market would not be allocatively efficient because
1) the sum of consumer and producer surplus would not be maximized;
2) the marginal benefit to consumers of the last movie consumed would be greater than the marginal cost to the seller;
3) the marginal cost to the seller of the last movie consumed would be more than the marginal benefit to consumers.



▸ 1 only

▸ 2 only

▸ 3 only

▸ 1 and 2

▸ 2 and 3
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 90 times
1 Reply
Replies
Answer verified by a subject expert
majudomminickmajudomminick
wrote...
#1
Posts: 142
Rep: 0 0
2 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

sam3359 Author
wrote...

2 years ago
You make an excellent tutor!
logbi
wrote...

Yesterday
Thanks
jmelchor77
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Bold
Italic
Underline
Strikethrough
Subscript
Superscript
Insert Math Equation
Font Name
Font Color
Align left
Center
Align right
Bullet list
Numbered list
Insert a horizontal rule
Insert a table
Insert a Quote
View source
Explore
Post your homework questions and get free online help from our incredible volunteers
  964 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 364
  
 349
  
 828
Your Opinion
Which country would you like to visit for its food?
Votes: 895
Previous poll results: What's your favorite math subject?