Graph 7-6
-In Graph 7-6, beyond the equilibrium quantity in a free market:
A)the value to buyers is greater than the cost to sellers
B)the cost to sellers is greater than the value to buyers
C)cost to sellers is equal to the value to buyers
D)producer surplus would be greater than consumer surplus

Question

Graph 7-6 
-In Graph 7-6, beyond the equilibrium quantity in a free market:
A)the value to buyers is greater than the cost to sellers 
B)the cost to sellers is greater than the value to buyers 
C)cost to sellers is equal to the value to buyers 
D)producer surplus would be greater than consumer surplus

Quizplus · Accepted Answer

Beyond the equilibrium quantity, the cost to sellers (supply) is greater than the value to buyers (demand), indicating that there is an excess supply in the market. This is because the additional units produced have a higher cost than what buyers are willing to pay for them. This leads to a surplus of goods, lower prices, and a decrease in producer surplus.

Graph 7-6 -In Graph 7-6, Beyond the Equilibrium Quantity in a Free