If John's willingness to pay for a good is $20 and the price of the good is $15, how much is John's consumer surplus from purchasing the good?
Consumer surplus is $5.
You might also like to view...
What do Fannie Mae and Freddie Mac have in common?
A) They are both investment banks. B) Both firms issue bonds on behalf of the government. C) Both firms went out of business in the 2008 financial crisis. D) They are both pension funds. E) They are both government-sponsored mortgage lenders.
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The rent ceiling leads to a
A) shortage of 1000 apartments. B) shortage of 2000 apartments. C) surplus of 1000 apartments. D) surplus of 2000 apartments.
When output rises, unemployment falls
a. True b. False Indicate whether the statement is true or false
Which of the following would be an example of expansionary fiscal policy?
A) An increase in the individual income tax rate. B) Extending the period in which unemployed workers can collect unemployment benefits. C) A decrease in the amount of federal grants given to college students D) A decrease in interest rates.