The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is $0.35 per minute. If the price were to increase by ten cents per minute, consumer surplus would
A) fall to $820.
B) fall by $84.
C) fall by $58.
D) fall to $369.
B
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The table above shows the demand and total cost schedule for a monopolist hotel. What is the marginal revenue from renting out the fifth room each night?
A) $111 B) $141 C) $151 D) $161
When a perfectly competitive firm experiences positive economic profits
A) the high barriers to entry prevent further competition. B) existing firms exit the industry. C) additional firms enter the industry. D) firms have no incentive to exit or enter the industry.
The branch of economics that studies the decisions of individuals and firms is called
A) macroeconomics. B) microeconomics. C) microeconomics and macroeconomics. D) positive economics. E) normative economics.
With allocative efficiency:
a. There is production of that particular mix of goods and services most wanted by society b. There is production of any particular mix of goods and services in the least costly way c. The available supplies of factors of production are fixed in both quantity and quality d. The state of technology, or methods used to produce output, do not change