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?
Sure! To find a graph that illustrates the effects of falling production costs on the price and quantity of stereo systems sold, you can try the following steps:
1. Search for "supply and demand graph" using your preferred search engine. This will give you a variety of images and resources related to supply and demand graphs.
2. Look for images or diagrams that specifically depict the relationship between changes in production costs and the equilibrium price and quantity in the market.
3. Pay attention to the labels and axes in the graph to ensure it accurately represents the relationship mentioned in your question.
4. It might be helpful to add keywords such as "microeconomics" or "falling production costs" to your search to find more specific and relevant results.
5. Once you find a suitable graph, ensure it demonstrates the effect of falling production costs on the price and quantity of stereo systems sold.
Remember, it is always a good idea to double-check any information or sources you find online to ensure their accuracy and reliability.