The above figure shows the U.S. market for chocolate. With no international trade, producer surplus is equal to
A) area A + area B + area C + area D.
B) area B + area C + area D + area E.
C) area B + area C + area D.
D) area C + area D.
E) area E.
E
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Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00If the oranges were grown and the jam produced in the year 2015, but the marmalade was sold at The Corner Store in the year 2016, what is the contribution of these transactions to GDP in the year 2015?
A. $2.50 B. $2.75 C. $2.00 D. $1.25
When demand decreases and the demand curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
The quantity theory of money seeks to explain the connection between money and
A) interest rates. B) unemployment. C) output. D) prices.
On a supply and demand diagram, a tariff works by
A. moving the supply curve vertically up by the amount of the tariff. B. limiting the amount that can be sold to a specific amount. C. moving the demand curve vertically up by the amount of the tariff. D. moving the supply curve vertically down by the amount of the tariff.