The producer surplus in the diagram is:

Area below price received and above supply curve.

Allocative efficiency

Requires production efficiency and goods consumers want

The supply curve for Ford Mustangs shown below indicates

Government has imposed extra import duty on goods from USA

This demand curve for Ford Mustangs indicates that

Consumers less willing and able to purchase at higher price

The Demand Curve below for Ford Mustangs indicates that

Ford has found a strong reliable niche market

Point F on the curve below represents:

The point where resources are under utilised

The price will have to increase at some point

The diagram provided shows

The rent price set by landlords is too high

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Year 13 Economics As 3.1 (1)

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Questions 10

Answers

1
The demand curve below is
Relatively inelastic
Unitary elasticity
Supply Elasticity of Demand
Relatively elastic
2
The producer surplus in the diagram is:
$1300
$1,150
The area above price paid and below demand curve.
Area below price received and above supply curve.
3
Allocative efficiency
No-one else needs to pick up the costs
Everyone wins
Requires production efficiency and goods consumers want
It is possible to make someone better off
4
The supply curve for Ford Mustangs shown below indicates
Ford has found a new niche for the Mustang
Government has imposed extra import duty on goods from USA
Government has decreased GST
Government has lowered tarrifs
5
This demand curve for Ford Mustangs indicates that
Consumers less willing and able to purchase at higher price
The import duty has increased
There is a shift of the demand curve
Ford NZ has increased quantity supplied of the mustang
6
The Demand Curve below for Ford Mustangs indicates that
Ford has found a strong reliable niche market
Import duty has increased
The Chevrolet Corvette has become a cheaper option
The price of fuel has increased
7
Point F on the curve below represents:
The current position of the NZ Economy
A level of output beyond capacity
The production efficiency position
The point where resources are under utilised
8
The graph shows
The price will have to increase at some point
There is an excess of supply
There is a surplus of 400 units
The market price is $30
9
The diagram provided shows
The rent price set by landlords is too high
There is excess demand for houses
There is a shortage of rental properties
The market has found itself
10
The Consumer Surplus in the diagram below is:
$2,500
$1,250
difference between price producer gets and costs to produce
The cost a consumer pays over revenue received

Year 13 Economics As 3.1 (1) Flashcards | StudBud