If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________
A) increase
B) decrease
C) equal the producer surplus if the market produces the efficient quantity of pizza
D) remain the same
B
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Assume the MPC is 0.8 . Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the
a. left by $180 billion. b. left by $500 billion. c. right by $180 billion. d. right by $400 billion.
According to supply-side economists, what impact do mandatory benefits have?
A. They increase payroll costs and shift AS to the left. B. They reduce payroll costs and shift AS to the right. C. They increase payroll costs and shift AS to the right. D. They reduce payroll costs and shift AS to the left.
Refer to the cost table below. Diminishing marginal returns begins to set in with the production of which unit of output?
A. 2
B. 3
C. 4
D. 5
A parity ratio of 0.6 in year A means that prices:
A. Received in year A could buy 60 percent as much as prices received in the base period B. Received in the base period could buy 60 percent as much as prices received in year A C. Received in year A had risen by 60 percent over the prices received in the base period D. Paid by farmers in year A had risen by 60 percent over the prices paid in the base period