Figure 7-6

-Refer to Figure 7-6.If this market were currently at a quantity of 110,what would we know
A)The producers' willingness to sell is greater than the consumers' willingness to pay
B)The value to buyers is greater than the cost to sellers.
C)The cost to sellers is greater than the value to buyers.
D)Consumer surplus would be greater than producer surplus.

Question

Figure 7-6
​
 
-Refer to Figure 7-6.If this market were currently at a quantity of 110,what would we know
A)The producers' willingness to sell is greater than the consumers' willingness to pay 
B)The value to buyers is greater than the cost to sellers. 
C)The cost to sellers is greater than the value to buyers. 
D)Consumer surplus would be greater than producer surplus.

Quizplus · Accepted Answer

At quantity 110, the demand curve intersects the supply curve at a price that is below the equilibrium price, indicating that the cost to sellers is greater than the value to buyers. This implies that some sellers may be willing to exit the market, causing a decrease in supply and a shift of the supply curve to the left.

Figure 7-6 ​

Figure 7-6