Refer to the graph below. At equilibrium, the producer surplus would be represented by the area:
The equilibrium point in the market is where S and D curve intersect.
A. b
B. b + c
C. a + b
D. b + c + d
A. b
You might also like to view...
The figure below shows the demand for meals at lunch and dinner for a proposed new restaurant. Suppose the marginal cost of a meal (both lunch and dinner) is constant at $10 per meal and marginal cost of providing the capacity is constant at $5 per meal. What is the profit-maximizing capacity?
A) 700 meals B) 750 meals C) 900 meals D) 600 meals
If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True b. False Indicate whether the statement is true or false
A sin tax is an example of:
A. a tax that increases the efficiency of a market. B. a Pigovian tax. C. government policy increasing total surplus in a market. D. All of these statements are true.
If the dollar fell by 35% relative to the other currencies, our current account deficit would
A. rise sharply. B. rise slightly. C. not be affected. D. fall sharply.