The gains from consumer surplus and producer surplus occur when
A. the government supplies the good instead of firms.
B. both consumers and producers engage in voluntary exchange.
C. producers are willing to provide a good but consumers are not willing to pay for it.
D. consumers are willing to buy a good but producers are not willing to provide it.
Answer: B
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When the supply of land is upward sloping,
a. all land owners earn land rents b. the demand for land must intersect it c. all land owners have the same supply price d. different supply prices are generated for different lands e. a rightward shift in demand causes land rents to fall
A common resource is both:
a. excludable and rival in consumption. b. nonexcludable and nonrival in consumption. c. excludable and nonrival in consumption d. nonexcludable and rival in consumption.
A demand-pull inflation spiral results when
What will be an ideal response?
The homoskedastic normal regression assumptions are all of the following with the exception of:
A) the errors are homoskedastic. B) the errors are normally distributed. C) there are no outliers. D) there are at least 10 observations.