10) Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect. Price P₁ 0 a C Q₁ b d Q₂ @ Quantity S D If actual production and consumption occur at Q₁ A) consumer surplus is maximized. C) missing surplus of e + d occurs. 10) B) missing surplus of b + d occurs. D) economic surplus is maximized.

II. What will happen to Demand(D), Supply(S), new Equilibrium Price(P*), and new Equilibrium Quantity(Q*) when the market condition changes as the following. Explain the reason and draw relevant graphs supporting your analysis.   A. Market: Plywood in Florida Event: The Hurricane Center increases the probability of Hurricane to make a landfall in Florida   B. Market: Bauxite Event: GM is able to increase the mph of its vehicles by using more aluminum in cars and so plans to use more aluminum. Bauxite is a resource in producing aluminum.   C. Market: Skateboards Event: The price of fiberglass rises (Fiberglass is a substance used for making skateboards)   D. Market: Hamburger Event: 1. A new processing technology lowers the production cost of hamburger patties AND, simultaneously, Event: 2. The Surgeon General advocates eating only 2 ounces of red meat per day for health concerns   E. Market: Chicken Event 1. Avian flu spreads fast hurting chicken producers AND, simultaneously, Event 2.…

D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x units of an​ item, and​ S(x) is the​ price, in dollars per​ unit, that producers are willing to accept for x units. Find ​(a​) the equilibrium​ point, ​(b​) the consumer surplus at the equilibrium​ point, and ​(c​) the producer surplus at the equilibrium point.   ​D(x)=(x−9)^2​, ​S(x)=x^2+6x+57

Consumer surplus is a measure of the difference between: a)  The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b)  The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c)  The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d)  The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).