posted by G on .
I am taking Microeconomics.
I have the following question:
The cost of producing stero systems has fallen over the past several decades.
a) Use the supply-and-demand diagram to show the effects of falling production costs on the price and quantity of steros sold.
b) In your diagram, show what happens to consumer surplus and producer surplus.
I understand the question. I am not sure how the graph should look with the price going down for the concumser and producer surplus.
Can anyone provide a place online I can look to find a graph that shows this situation?