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Sellers cost, producers surplus, and the supply curve are related?
h
surplus
If supply decreases the prices will go up and quantity will go down and surely total surplus will be reduced.
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
Sellers cost, producers surplus, and the supply curve are related?
h
surplus
If supply decreases the prices will go up and quantity will go down and surely total surplus will be reduced.
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
which is true about the functional relationship shown in the graph
Surplus production occurs when too much of a good is produced. Supply then outweighs the demand.
less
Surplus?
A surplus of supply
A surplus of supply
Graph