Asked by Oscar Zamora on Jul 15, 2024
Verified
(Figure: The Market for Hamburgers) Look at the figure The Market for Hamburgers.The maximum total surplus for the market is _____,and it occurs at a price equal to _____.
A) $550;$1.50
B) $600;$1.50
C) $1,050;$2
D) Not enough information is provided to answer this question,since the maximum total surplus could occur anywhere.
Total Surplus
The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.
Market for Hamburgers
This refers to the economic market in which buyers and sellers engage in the trade of hamburgers, influenced by factors such as price, demand, and competition.
- Analyze the differences and similarities between producer surplus, consumer surplus, and total surplus.
- Apply the concept of producer surplus to real-world situations involving goods and services.
Verified Answer
HS
Haili SnookJul 16, 2024
Final Answer :
B
Explanation :
The maximum total surplus in a market occurs where the supply and demand curves intersect, as this point represents the equilibrium price and quantity, optimizing the total surplus. Without seeing the figure, we typically assume this principle holds. Given the options, the choice that suggests a specific total surplus and price ($600; $1.50) aligns with the concept of an equilibrium maximizing total surplus, assuming this choice reflects the equilibrium point described in the unseen figure.
Learning Objectives
- Analyze the differences and similarities between producer surplus, consumer surplus, and total surplus.
- Apply the concept of producer surplus to real-world situations involving goods and services.