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Fantom [35]
2 years ago
10

A consumer values a car at $20000 and it costs a producer $15000 to make the same car. If the transaction is completed at $18000

, the transaction will generate:
Business
1 answer:
solniwko [45]2 years ago
8 0

Answer:

The transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

Explanation:

A consumer values a car at $20,000

It costs a producer $15,000 to generate that same car

The transaction is complete at $18,000

The first step is to calculate the buyer's surplus

= $20,000-$18,000

= $3,000

The seller's surplus can be calculated as follows

= $18,000-$15,000

= $3,000

Hence the transaction will generate a buyer surplus of $2,000 and a sellers surplus of $3,000

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If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply
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Answer:

Demand decreases.

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