Macmillan Learning 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. This causes the market supply curve to increase from S1 to S2. a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new producer surplus in the market.
Macmillan Learning 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. This causes the market supply curve to increase from S1 to S2. a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new producer surplus in the market.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 2SQ
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Transcribed Image Text:Macmillan Learning
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. This causes the market supply curve to increase from S1 to S2.
a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new
producer surplus in the market.
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