The above figure shows supply and demand curves for apartment units in a large city. The area "c" represents
A) the loss in consumer surplus if a rent ceiling of $350 is imposed.
B) a transfer from producers to consumers if a rent ceiling of $350 is imposed.
C) a transfer from consumers to producers if a rent ceiling of $350 is imposed.
D) the total revenue received by supplying Q1 units.
B
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The "underground economy" refers to
A) the formal sector of the economy in developing countries. B) the production of goods and services used by the government for covert spy operations. C) the sector of the economy that earns profits that are higher than average. D) the buying and selling of goods that is concealed from the government.
A simultaneous increase in demand and decrease in supply would lead to:
a. An increase in the equilibrium price and a decrease in the quantity sold b. An increase in both the equilibrium price and the quantity sold. c. A decrease in both the equilibrium price and the quantity sold. d. An uncertain effect on the equilibrium quantity but an increase in the equilibrium price.
A company that can build a project that will cost $50,000, but returns $52,000 in one year would make a good decision by turning this project down if the interest rate were 3 percent
a. True b. False Indicate whether the statement is true or false
If consumer confidence rises, then aggregate demand shifts
a. right, making inflation higher than otherwise. b. right, making inflation lower than otherwise. c. left, making inflation higher than otherwise. d. left, making inflation lower than otherwise.