Assume the market for headbands is characterized by a downward sloping demand curve and an upward slopingsupply curve. Suppose there is an improvement in technology for producing headbands. Which of the followingwould occur?ACEThe total surplus (sum of producer andconsumer surplus) would increaseBThe change in equilibrium price wouldcause total producer surplus to increase DThe impact on total consumer surpluswould be indeterminate, because of theoffsetting impact of the changes inequilibrium price and quantityThe supply curve would shift up,resulting in an increase in theequilibrium quantity and total producersurplusThe demand curve would shift right inresponse to an increase in equilibriumpricehttps://bcps.schoology.com/common-assessment-print/course/6305214264/6083116066?multipleQuestions=1&includeAnswerkey=1&includeBlank 10/33

Answered: Image /qna-images/answer/5594b2ec-bcd1-458a-9a05-456a47307aec.jpg

Answered: A O The total surplus (sum of producer…

Business

Economics

A O The total surplus (sum of producer and consumer surplus) would increase

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

See similar textbooks

Related questions

Q: Question 3 A certain household comprises of a couple, Adam (A) and Betty (B). They have exicographic…

A: A choice is considered to be optimal if it results in a known or predicted outcome that is at least…

Q: The rate at which a consumer is able to substitute one good for another is determined by the…

A: The Marginal utility refers to the change in the total utility when one additional unit of good is…

Q: 3 A Cost Function A firm's cost function is: c(w₁, w2, y) = y²w₁5 w;5 a. What type of returns to…

A: The given cost function which is a function of input prices and the output is the minimum level of…

Q: The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of…

A: Labour productivity tells us how efficient is labour. How many outputs are produced per unit of…

Q: The populations of Abu Dhabi (National, Non-National, and Total) and UAE are shown in the following…

A: Here we are given the population data of Abu Dhabi and UAE. And we will calculate the respective…

Q: A community public works project will cost $92,000 and will benefit five different individuals.…

A: No individual or preference criterion can be made better off without at least one of them becoming…

Q: Consider a 529 (college savings) plan that will pay $20,000 once a year for a 4-year period (4…

A: child is send to college for 4 yo yours. The forged of $20000 in line with 12 months is -payable at…

Q: When the price of oil was $95 per barrel, in thecountry of Wherever, 21,000 barrels of oil were…

A: Production refers to the process of manufacturing commodities by the producers in an economy. These…

Q: 2. Using the data in Problem no. 1, construct an amortization schedule showing the principal at the…

A: As you mention above we are just solving part 2

Q: All of the following are reasons that spending on durable goods is volatile except durable goods are…

A: When talking about durable goods, it can be said that these are the goods that are not required to…

Q: a. Based on PW method, Design Z is more economical. . The modified B/C ratio of Design Y is The…

A: Given Design Y Design Z Investment cost $140,000 $275,000 Annual revenue $57,659 $96,354…

Q: If the interest rate is 10%, the present value of $100 to be paid next year is

A: Present value is the value of a sum of money of some future period. The formula for the same is:…

Q: Nissan is advertising a 24-month lease on the all-electric Leaf for $190 payable at the beginning of…

A: Nissan is advertising a 24-month lease on the all-electric Leaf for $190 payable at the beginning of…

Q: A couple wants to save for their daughter’s college expenses. The daughter will enter college eight…

A: The amount that the lender usually adds to the principal sum that the borrower owes is referred to…

Q: High-income industrial nations such as the United States and Japan tend to have their highest…

A: When talking about nations like United States and Japan that are high-income industrial nations, it…

Q: Suppose that good 1 is normal and good 2 is inferior. Prove that the total effect on demand for good…

A: Inferior Goods are defined as those goods that have a negative relation with income. When income…

Q: р P4 P3- P₂+ PI + - - MR QI [[[[२८]] Q3 The monopolistically competitive firm in the figure above MC…

A: When many companies offer competing products or services that are similar but not perfect…

Q: 2. Initially, PH = 40 CH, PF = 60 CF and E= 2 CH/CF. Then, they changed to PH = 30 CH, PF = 20 cF…

A: Here we are given the price in the 2 countries and a nominal exchange rate. And based on that we…

Q: Which of the following is not included in GDP? 1) the payments for a chiropractor's services 2) cash…

A: The total monetary value of all services and goods produced by a country over a given time period is…

Q: What are the advantages and disadvantages of special interest groups within the democratic system of…

A: The various measures taken by the government to control and regulate the private sector in order to…

Q: mer of two goods has utility U(X1, 2) = X1X2. She can purchase each good ce of p; dollars per unit.…

A: Introduction A person who uses two products has usefulness. She can pay a fixed charge of C…

Q: ! The question is to Explain how the following situation would affect a nation's production…

A: The production function shows the different combinations of two goods that can be produced with…

Q: Price $0 $5 $10 $15 $20 A Supply of Grapefruits E 0 5 10 15 20 Both $10 Both $50 Both $200 B Print…

A: Consumer surplus is the difference between the price the consumer actually pays and willing to pay…

Q: so possesses a technology that allows him to costlessly convert any quantity of grapes into e same…

A: The utility function establishes the connection between the overall utility attained by consuming…

Q: A country will roughly double its GDP in twenty years if its annual growth rate is: Group of answer…

A: Here we will use the future value formula in case of compound rate of interest, which is given as:…

Q: The populations of Abu Dhabi (National, Non-National, and Total) and UAE are shown in the following…

A: Here we are given the population data of Abu Dhabi and UAE. We will use these numbers to calculate…

Q: This table shows the values of different elasticities of demand for yogurt at the market equilibrium…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose that banks had a desired reserve ratio of 4 percent, $12 billion in currency, no excess…

A: Commercial banks are required to keep certain percentage of their total deposits either with…

Q: debt of P 10,000 with interest at the rate of 20% compounded semi-annually is to be amortized by 5…

A: Size of payment The size of the payment is computed in the amortization of the loan. It is computed…

Q: A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a)…

A: The effective interest rate will be including the compounding period into consideration while…

Q: Question 2 Your marginal benefit from eating candy bars is shown in the table below: Marginal…

A: The difference between the overall benefit obtained and the quantity used is used to determine the…

Q: the required reserve ratio is 1/3, currency in circulation is $300 billion, checkable deposists are…

A: Money supply can be measured in ways like M1, M2, M3, M4. M1 has most of the liquid parts which are…

Q: fer to the information provided in Figure 1 below. Technological progress will cause a Group of…

A: We have given three production possibility frontier: ppf1, ppf2, and ppf3. The ppf1 lies below the…

Q: Consumption smoothing emphasizes the need to O maximizing consumption. O promote price stability and…

A: Consumption Organizational units absorb goods or services through the activity of consuming, which…

Q: A consumer of two goods has utility u(x₁, x2) = x²x₂. In addition to her wealth w, the consumer…

A: Utility Function : U = x12x2 Budget Constraint : p1x1 +p2x2 = w Optimal consumption point is…

Q: a. Referring to the above data, discuss whether gasoline cars and electricity are substitutes or…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Use the inflation indices table shown below to make the below listed conversions. Show all work…

A: The purpose of measuring inflation is to determine the overall effect of increases in price for a…

Q: The ________ function is the mathematical representation of the technological relationship between…

A: Net export is the difference between Export and import. Saving is the remaining amount from the…

Q: You currently have $20,000 in the bank. The monthly interest rate is 0.5%. What equal amount could…

A: Given that, Monthly interest, (i) =0.5% Time, n=60 months Present value = $20,000

Q: whole story. Discuss what the unemployment rate is telling us. Explain what the unemployment rate…

A: In January , the working age population is given by 254.1 million Out of this , employed = 152.1…

Q: Answer the question, using the 3 step approach? 9. Forecast the effects of changing market…

A: When talking about economic downturn, it can be said that it is the situation when there is a…

Q: Which of the following would be counted in this year's GDP? Od The bonus check a worker receives…

A: GDP is the production of goods and services during an accounting year. The transfer payments are not…

Q: Individuals are unemployed due to a lack in skills that modern industries need, change in…

A: Meaning of Unemployment: Here, the term unemployment is that state where most of the ratio of the…

Q: . What happens when government imposes a tax of 60 cents per gallon on buyers?

A: When economic pressures are already in proportion, there is said to be an economic equilibrium.In…

Q: Question 1 :- (a) What is meant by an amortizing security? (b) What are the three components of…

A: Answer to the three sub parts are as follows:

Q: A man borrowed some money from a private at 5 % simple interest per annum. He landed this money to…

A: We use the following formulas to solve for the Simple Interest: Simple Interest = Principal X Time X…

Q: India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate…

A: Exchange rate is the rate at which the two nation's currency is exchanged. Here dollar is exchanged…

Q: A monopoly is considering selling several units of a homogeneous product as a single package. A…

A: Monopoly A monopoly is indeed a market arrangement where one producer and reseller hold a…

Q: 3: information Use the following Currency in circulation Reserves of the banking system = $850…

A: Federal reserve bank is the reserve bank or central bank. Central banks balance sheet is the…

Question

Assume the market for headbands is characterized by a downward sloping demand curve and an upward sloping
supply curve. Suppose there is an improvement in technology for producing headbands. Which of the following
would occur?
A
C
E
The total surplus (sum of producer and
consumer surplus) would increase
B
The change in equilibrium price would
cause total producer surplus to increase D
The impact on total consumer surplus
would be indeterminate, because of the
offsetting impact of the changes in
equilibrium price and quantity
The supply curve would shift up,
resulting in an increase in the
equilibrium quantity and total producer
surplus
The demand curve would shift right in
response to an increase in equilibrium
price
https://bcps.schoology.com/common-assessment-print/course/6305214264/6083116066?multipleQuestions=1&includeAnswerkey=1&includeBlank 10/33

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is consumer surplus? How is it illustrated on a demand and supply diagram?
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
Say in a market we haveDemand is P = 5 – 0.005QSupply is P = 0.00125Qa-you will have a graph with price on the vertical axis and quantity on the horizontal axis formost parts of this problem. You will want to show intercept values and equilibrium values withthe specific values from the problem (when you graph the supply show it go out at least to thesame level of Q as the Q intercept for the demand curve).b-what are the equilibrium price and quantity traded in the market?c-say the government levies an excise tax in the market of 50 cents that renders the supply tonow be P = .00125Q + 0.5 (essentially the supply curve shifts up by 50 cents at each quantity).What are the new equilibrium price and quantity traded in the market with this excise tax?d-did the market price increase by as much as the 50 cent tax? (compare the market priceincrease with the amount of the tax of 50 cents)e-what is then loss in consumer surplus from the tax? Do consumers like excise taxes?f-what is the elasticity…
Ticketmaster decides to lower the price of Beyonce tickets. This action will most likely result in O An incentive OA shortage OA surplus O Equilibrium
Suppose that the price of basketball tickets at yourcollege is determined by market forces. Currently, thedemand and supply schedules are as follows:Price Quantity Demanded Quantity Supplied$4 10,000 tickets 8,000 tickets 8 8,000 8,000 12 6,000 8,000 16 4,000 8,000 20 2,000 8,000a. Draw the demand and supply curves. What isunusual about this supply curve? Why might thisbe true?b. What are the equilibrium price and quantity oftickets?c. Your college plans to increase total enrollmentnext year by 5,000 students. The additional students will have the following demand schedule:Price Quantity Demanded$4 4,000 tickets 8 3,000 12 2,000 16 1,000 20 0Now add the old demand schedule and thedemand schedule for the new students tocalculate the new demand schedule for theentire college. What will be the newequilibrium price and quantity?
A recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?
Question H a Siven the table below, Calculote the average physicol product and morginol physicol produCf Heput lotal physicol Prodoct Aueroge Physicol Pineluct Marginal Physzcol Procuct 4. 24 6)Assume that demand for a commodity Maize is repiesented by the equetion R Ps10-0.2QP ond supply bythe equotion P=a+Du2@s, where Qd and @s are quantity demonded (ng) and Sopploed by Chg),respectiwoly, ond Pis price (us Dolbras) 1 Using the equilibicum Condition Os= Ad, solue the equotions to determine equilibrium price and eqailibium quantity. iJNow,assume that the gover ament intervenes by imposong a morket puce of 18 tor maize. What will be-che market Sutuotion Creadedl la tit this now morhet 19) How can you aduise the with the market situction created in f) ebove?
DATE 4.1 The demand equation por a product is : 0.01g* - 19 t 100 t 83 and the supply equation is: P 0.049? t is al Determine consumers surplus under marret equilibirium b.) Graph the equilibirium using www.desmos.com of your own graph c.) C-) Give an explanation based on answer a b.
In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.
The cost of producing flat-screen TVs has fallen overthe past decade. Let’s consider some implications ofthis fact.a. Draw a supply-and-demand diagram to show theeffect of falling production costs on the price andquantity of flat-screen TVs sold.
what are the determinants of the produce surplusin a market ?how does it increse depend on the determination ?