Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 7 - Consumers, Producers, and the Efficiency of Markets - Questions For Review - Page 151: 3

Answer

Set up a supply and demand graph then draw a dash horizontal line leading to equilibrium price. The upper triangle is consumer surplus and the bottom triangle is producer surplus.

Work Step by Step

Understand the graphical representation of consumer and producer surplus.
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