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?

1. 👍 0
2. 👎 0
3. 👁 146

## Similar Questions

1. ### Economics

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

asked by G on February 8, 2008
2. ### Economics

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

asked by G on February 8, 2008
3. ### math

The daily cost C, in RM, of producing a product is C(x)=1000+72x-0.06x^2 (0 more & equal x less & equal 60) where x represents the number of product produced. a) Find the daily cost of producing 50 units b) Find the marginal cost

asked by ifi on May 5, 2013

The cost of producing a number of items x is given by C=mx+b, inwhich b is the fixed cost and m is the variable cost (the cost of producing one more item). (a) If the fixed cost is \$40 and the variable cost is \$10, write the cost

asked by cheryl on March 29, 2007
5. ### Economics

I have the following question in my assignment: 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 fallaing production costs on the price and

asked by G on March 11, 2008
6. ### Basic math for science

A sportswear manufacture determines that the marginal cost of producing x worm-up suits is given in dollars by 20-0.015x.if the cost of producing one suits is \$25,find the cost function and the cost of producing 50 suits and 100

asked by Rose on May 29, 2016
7. ### Algebra

83. Minimizing Marginal Cost The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is \$6.20, it cost \$6.20 to

asked by Terry on November 3, 2011

Question No: 1 Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is feasible. The consultancy fee paid to

asked by william on August 5, 2010
9. ### math

* I posted this before, but I left out the equation, sorry. A company estimates that the marginal cost (in dollars per item) of producing x items is 2.08x-0.002x. If the cost of producing one item is \$531 find the cost of

asked by Sam on April 14, 2007
10. ### Math - average rate problems(check + help)

The total cost, c, in dollars of operating a factory that produces kitchen utensils is C(x)=0.5x^2+40x+8000, where x is the number of items produced in thousands. a)Determine the marginal cost of producing 5000itmes and compare

asked by Anonymous on October 16, 2010

More Similar Questions