Assume the market is in equilibrium in the graph shown at demand D and supply S1 (at a quantity of 5). If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7), which of the following is true?
A. Total surplus increases by $12.50.
B. Total surplus decreases by $12.50.
C. Total surplus increases by $15.50.
D. Total surplus decreases by $15.50.
C. Total surplus increases by $15.50.
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Quantitative easing is likely to lead to a(n) ________
A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate
Refer to Table 1-1. Using marginal analysis, by how many hours should Lydia extend her nail salon's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
A variable that tends to move at the same time as aggregate economic activity is called
A) a leading variable. B) a coincident variable. C) a lagging variable. D) an acyclical variable.
The existence of multiple federal bank regulatory authorities has been permitted to continue because
A) the regulators coordinate their activities well enough to avoid differences. B) different types of banks require different kinds of regulation. C) many regulatory authorities are necessary to insure the safety of depositor's funds. D) the legislative will to replace the current regulatory system has been lacking.