This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What area on a supply and demand graph represents producer surplus? What will be an ideal ... (Read 192 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jun 29, 2018
What area on a supply and demand graph represents producer surplus?
 
  What will be an ideal response?

Question 2

Explain the income effect and the substitution effect due to an increase in the wage rate.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sarahjh

  • Sr. Member
  • ****
  • Posts: 370
Reply #1 on: Jun 29, 2018
Answer to Question 1

Producer surplus is the area above the supply curve and below the market price.

Answer to Question 2

An increase in income will lead to a higher demand for leisure. However, an increase in the wage rate will also make leisure more expensive. Since these two effects are moving in opposite directions of one another theory alone cannot tell us the net effect without knowing the absolute change of the income and substitution effects.


sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 29, 2018
:D TYSM

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Progression Graph: Fitness Plan Progression Graph: Fitness Plan
Effleurage with palms to reconnect the hip area to the leg. Slide the palms from foot to around the ... Effleurage with palms to reconnect the hip area to the leg. Slide the palms from foot to around the ...
Basic massage practice office area. Basic massage practice office area.
Who's Policing the Food Supply? Who's Policing the Food Supply?
Producer acquiring energy and nutrients from the environment Producer acquiring energy and nutrients from the environment
State the transformations on the function f(x)= 4sin(x-pi)-2 and then graph two cycles below. State the transformations on the function f(x)= 4sin(x-pi)-2 and then graph two cycles below.
Video: Erythropoietin (EPO)

For a complete list of videos, visit our video library