Tuesday
March 31, 2015

Homework Help: Economics

Posted by Mike on Friday, November 17, 2006 at 11:00am.

An early freeze in CA sours the lemon crop, What happens to consumer surplus in the market of lemons? What happens to consumer surplus in the market for lemonade? Illustrate your answers with diagrams

Draw initial supply and demand curves for lemons. Because of the freeze shift the supply curve inward. Consumer surplus is the area below demand but above price. What happens to this area? Producer surplus is the area above supply but below price. What happens to this area?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - As price falls along the elastic portion of a linear demand curve, ...
Economics - I have the following question in my assignment: The cost of ...
Microeconomics - Answer the following questions based on the graph that ...
Economics - I am not getting any of the answers for the consumer surplus that ...
Econ MC - Suppose that the equilibrium price in the market for widgets is $5. If...
!math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...
!math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...
*math (6) - The quantity demanded x (in units of a hundred) of the Mikado ...
Economics - Consider the problem of a rational consumer with an experienced ...
econ - Assume Felix is willing to par $8 for a Star Trek pizza cutter. Tim also ...

Members