Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $8 to $11:

A. total producer surplus would increase to $17.
B. total producer surplus would increase to $5.
C. total producer surplus would decrease to $1.
D. total producer surplus would decrease to $7.

Answer: B

Economics

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During the antebellum period, the South exported more to England than it imported. This Southern trade surplus with England benefited whom?

(a) The South (b) The North (c) England (d) All of the above

Economics

Which of the following is a difference between absolute advantage and comparative advantage?

a. Absolute advantage occurs when a country has a lower production cost than its trading partner, while comparative advantage occurs when a country produces a good at a lower opportunity cost than its trading partners. b. Absolute advantage occurs when a country has a higher production cost than its trading partner, while comparative advantage occurs when a country produces a good at a higher opportunity cost than its trading partners. c. In the case of absolute advantage, a country experiences an increase in total surplus post trade, while in the case of comparative advantage, a country experiences no change in total surplus post trade. d. Absolute advantage occurs when a country benefits by exporting a particular good, while comparative advantage occurs when a country benefits by importing a particular good.

Economics