In the figure above, the equilibrium market price is $20. The producer surplus is shown by the area
A) A.
B) B.
C) A + B.
D) A ÷ B.
E) A - B.
A
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Based on Scenario 6.1 above, value added in the United States is
A) $500. B) $600. C) $400. D) $300. E) None of the above.
Monetarists argue that ________ should grow at a rate equal to the average growth of real output.
A. the money supply B. the personal income tax rate C. per-capita nominal GDP D. the velocity of money
There would be no excess burden from a tax if demand were
A. perfectly inelastic. B. perfectly elastic. C. unitarily elastic. D. upward sloping.
The graph below represents the market for lychee nuts. The equilibrium price is $7.00 per bushel, but the market price is $5.00 per bushel
Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $5.00.