Supply and demand begins with a benchmark
Mark the original equilibrium before changing a curve. The diagram shows demand shifting from D_1 to D_2 while supply remains unchanged. Which feature identifies the new equilibrium? Move down the original demand curve to a lower price. Shift supply left until quantity is unchanged. The new intersection has a higher price and quantity. Move along […]
Areas produce revenue, surplus, and deadweight loss
Match height with the correct post-change quantity. A market sells 300 units at $12 each. Which graph area represents total revenue? A triangle with base 300 and height $12 A rectangle with width 300 units and height $12 per unit A rectangle using the original quantity only The area below marginal cost The gap between […]
