The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower (marginal) cost while retaining the same quality. Market for Violins 300 270 a. Use the graph to illustrate the effect that this will have on the supply and demand of beginner-level violins and then answer the following three questions. 240 210 180 b. How much does this new technology increase consumer surplus? 150 120 00 2400 Increase in consumer surplus: $ 30 D. Incorrect 10 20 30 40 50 60 70 80 00 100 Quantity of violins (in thousands)

The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower (marginal) cost while retaining the same quality. Market for Violins 300 270 a. Use the graph to illustrate the effect that this will have on the supply and demand of beginner-level violins and then answer the following three questions. 240 210 180 b. How much does this new technology increase consumer surplus? 150 120 00 2400 Increase in consumer surplus: $ 30 D. Incorrect 10 20 30 40 50 60 70 80 00 100 Quantity of violins (in thousands)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 20P

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