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On a supply and demand graph, surplus is located above the equilibrium price point. It occurs when the quantity supplied exceeds the quantity demanded at that price, leading to excess goods in the market. This surplus area is typically represented by the region between the supply curve and the demand curve, extending from the equilibrium price upwards.
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Where is consumer surplus located on a monopoly graph?
Consumer surplus is located above the price and below the demand curve on a monopoly graph.
How does consumer surplus change on a supply and demand graph when there is an increase in demand for a product?
When there is an increase in demand for a product on a supply and demand graph, consumer surplus typically decreases. This is because as demand rises, prices tend to increase, leading consumers to pay more for the product and reducing the surplus they gain from purchasing it.
How can one calculate surplus on a graph?
To calculate surplus on a graph, find the equilibrium point where supply and demand intersect. The surplus is the area above the equilibrium price and below the demand curve. Subtract the equilibrium price from the highest price on the demand curve to find the surplus.
How can one determine the total surplus from a graph?
To determine the total surplus from a graph, calculate the area of the triangle formed by the intersection of the supply and demand curves. This triangle represents the total surplus in the market.
Where is the consumer surplus located on a graph depicting market equilibrium?
Consumer surplus is located above the market price and below the demand curve on a graph depicting market equilibrium.
Where is consumer surplus located on a monopoly graph?
Consumer surplus is located above the price and below the demand curve on a monopoly graph.
How does consumer surplus change on a supply and demand graph when there is an increase in demand for a product?
When there is an increase in demand for a product on a supply and demand graph, consumer surplus typically decreases. This is because as demand rises, prices tend to increase, leading consumers to pay more for the product and reducing the surplus they gain from purchasing it.
How can one calculate surplus on a graph?
To calculate surplus on a graph, find the equilibrium point where supply and demand intersect. The surplus is the area above the equilibrium price and below the demand curve. Subtract the equilibrium price from the highest price on the demand curve to find the surplus.
How can one determine the total surplus from a graph?
To determine the total surplus from a graph, calculate the area of the triangle formed by the intersection of the supply and demand curves. This triangle represents the total surplus in the market.
Where is the consumer surplus located on a graph depicting market equilibrium?
Consumer surplus is located above the market price and below the demand curve on a graph depicting market equilibrium.
How can one determine the total surplus on a graph?
To determine the total surplus on a graph, you can find the area between the supply and demand curves up to the equilibrium point. This area represents the total surplus, which is the sum of consumer surplus and producer surplus.
How can one calculate the total surplus from a graph?
To calculate the total surplus from a graph, you can find the area of the triangle formed by the supply and demand curves. This triangle represents the consumer surplus and producer surplus combined. The total surplus is the sum of these two surpluses.
How can one determine the economic surplus on a graph?
To determine the economic surplus on a graph, calculate the area between the supply and demand curves up to the equilibrium point. This area represents the total economic surplus in the market.
Where is surplus located on a supply graph?
Surplus on a supply graph is located above the equilibrium price, where the quantity supplied exceeds the quantity demanded. This occurs when the market price is set higher than the equilibrium price, leading to excess supply. The area representing surplus reflects the difference between the quantity supplied and the quantity demanded at that price level.
What is the relationship between interest rates and the supply and demand graph of the money market?
In the money market, interest rates and the supply and demand of money are inversely related. When interest rates are high, the demand for money decreases, leading to a surplus of money in the market. Conversely, when interest rates are low, the demand for money increases, causing a shortage of money in the market. This relationship is depicted on the supply and demand graph of the money market.
What does the excess supply graph reveal about the market dynamics of the product in question?
The excess supply graph shows that there is more supply of the product than demand for it in the market. This indicates that the product is not being fully consumed by consumers, which could lead to lower prices or a surplus of inventory.
What does the equillibrium point on a supply and demand graph represent?
which is true about the functional relationship shown in the graph
