240 220 200 180 + 160 + 140 120 100 80 60 - 40 - 20 + Demand 5 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. ii. Consumers entering the market after the price drop, receive $200 in consumer surplus.

The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in State College, a university town in Pennsylvania. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 100 80 60…

Assume that we are looking at the market for California wine. Assume that the initial equilibrium price is $20 and quantities are 1,000. What would be the impact on this market of a severe drought that destroys 50% of the grapes that are used to make this wine?   Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine.   Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine.   Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine.  Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.

In the market for off-campus apartments in San Diego, the market supply curve is QS = 300 + 1/8p The market demand curve for off-campus apartments is QD = 800 - 3/8p What is the equilibrium quantity?