Microeconomics
Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 12PA
To determine

To plot: the equilibrium price and equilibrium quantity. To represent the region of producer surplus in the diagram and calculate the value of producer surplus when the economy is in equilibrium.

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Consider the market for LCD TVs, illustrated in the figure to the right. Use the point drawing tool to identify the market equilibrium. Properly label this point. Carefully follow the instructions above, and only draw the required objects. Suppose instead that the price of LCD TVs is $2000.00. This will result in a , which will place pressure on the price. Price of LCD TVs 3000 2600- 2200- 1800- 1400- 1000- 600- 200- 2000 4000 6000 8000 Quantity of LCD TVs S 10000
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