Refer to the table above. If only the two highest-value buyers and the two least-cost sellers engage in trade, what is the social surplus?
A) $6
B) $10
C) $12
D) $20
B
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If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is elastic.
Answer the following statement true (T) or false (F)
What was the least important reason for the failure of the Virginia Company?
a. Difficulty in finding good crops to grow b. The Company's employees had unforeseen labor alternatives. c. There was a relatively small incentive for employees to work hard. d. The death rate was much higher than they expected.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. consumer surplus will decrease from (A + B + C) to (B + C) only.
B. consumer surplus will increase from (A + B + C) to A only.
C. consumer surplus (B + C) will transfer to producers.
D. consumer surplus will decrease by (B + C).
Suppose the wage rate in a certain industry falls, yet firms hire fewer workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.