Answer to Question #197904 in Math for Tavlene Singh

Question

Questions 11 and 12 are based on the following information: Consider the following graph showing the demand and supply functions for a certain product: Q P (1) (2) D C B A 13 Question 11 Which line represents the demand function and which represents the supply function? [1] Line BD represents the supply function and there is no demand line. [2] Both lines (1)and (2) represent supply functions and there is no demand line. [3] Line (1) represents the demand function and line (2) the supply function. [4] Line (1) represents the supply function and line (2) the demand function. Question 12 Which of the following statements is true? [1] Point D is the break-even point. [2] Point C represents the price that no consumers will accept. [3] The area of triangle ABD represents the consumer surplus at equilibrium. [4] The area of triangle ACD represents the producer surplus at equilibrium.

Answer 1

Question 11

demand function: Inverse Relationship

supply function: Direct Relationship

Answer: [4] Line (1) represents the supply function and line (2) the demand function.

Question 12

Consumer surplus is the gap between the price that consumers are willing to pay—based on their preferences—and the market equilibrium price.

Answer: [3] The area of triangle ABD represents the consumer surplus at equilibrium.