Automatic stabilizers have the effect of
A) increasing aggregate demand during a recessionary ga
A
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Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays. B) difference between the supply curve and the price a consumer pays. C) difference between total cost and total revenue. D) product of price of a good and quantity sold.
A perfectly competitive firm is a price taker, but a monopoly is a price maker
a. True b. False Indicate whether the statement is true or false
Based on this graph for the welfare effects of a subsidy, when does the deadweight loss start?
a. when the demand rises above the quantity at E1
b. when the supply rises above the quantity at E1
c. when the supply rises above the quantity at E2
d. when the demand drops below the quantity at E2
An increase in the quantity supplied of a good is most often due to:
A. lower prices. B. higher prices. C. an increase in the price of a substitute. D. more buyers entering the market.