The graph below represents the market for alfalfa. The market price is $7.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and economic surplus
What will be an ideal response?
Consumer surplus is represented by area A.
Producer surplus is represented by area B.
Economic surplus is represented by area A + B.
You might also like to view...
If a consumer doubles her quantity of ice cream consumed when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0. B) 4.0. C) .25. D) .08.
Which of the following helps explain low growth rates of many less developed countries?
a. Good law enforcement b. Political stability c. Low population growth rates d. Excellent legal systems e. Near-subsistence levels of per capita output
Something that induces a person to act is called
a. a trade-off. b. a policy. c. an incentive. d. an opportunity cost.
Both Kate and John own saltwater taffy factories. Kate's factory has low fixed costs and high variable costs. John's factory has high fixed costs and low variable costs. Currently, each factory is producing 1,000 boxes of taffy at the same total cost. Complete the following statement with the correct answer. If each produces
A. less, the costs of Kate's factory will exceed those of John's factory. B. more, the costs of Kate's factory will exceed those of John's factory. C. less, their costs will be equal. D. more, their costs will be equal.