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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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