4. The maximum that buyers are willing to pay for the 8-th unit of this product is     (a) $4     (b) $12     (c) $18     (d) $22     (e) $24 05. The minimum that suppliers will accept for the twentieth unit of this product is     (a) $2     (b) $8     (c) $12     (d) $18     (e) $22   06. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus?     (a) consumer's surplus is $72; producer's surplus is $36     (b) consumer's surplus is $98; producer's surplus is $49     (c) consumer's surplus is $32; producer's surplus is $16     (d) consumer's surplus is $36; producer's surplus is $72     (e) consumer's surplus is $144; producer's surplus is $14

17

Price $10 11 12 13 14 15 Quantity Supplied Quantity Demanded 295 275 250 220 100 150 190 220 245 265 180 135 A technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price. As a result of this technological change, equilibrium output in this market A) decreased by 60 units. B) decreased by 30 units. C) increased by 60 units. D) increased by 30 units.

32