Table 7-9

-Refer to Table 7-9.At a price of $4.00,total surplus is

Name: Table 7-9 -Refer to Table 7-9.At a price of $4.00,total surplus is
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Question

Table 7-9
 
-Refer to Table 7-9.At a price of $4.00,total surplus is

Quizplus · Accepted Answer

At a price of $4.00, the quantity demanded is 14 and the quantity supplied is 6, resulting in a surplus of 8 units. This surplus represents a loss to society as resources are being used to produce goods that are not being consumed. Therefore, total surplus is less than it would be at the equilibrium price where quantity demanded equals quantity supplied.

Table 7-9 -Refer to Table 7-9.At a Price of $4.00,total Surplus Is