Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?

Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the ATC of producing 10,000 fish?

a. increases by $25 b. increases by $2.50 c. does not change d. decreases by $2.50 e. decreases by $25

Given the demand curve in this graph, if price were $3.00, how much is consumer surplus?

A. $0
B. $1.50
C. $5.00
D. $10.50