Total producer surplus in a market is measured as the
A) area bounded above the market clearing price and beneath the market demand curve.
B) area bounded below the market clearing price and above the market supply curve.
C) vertical distance from the horizontal (quantity) axis to the market clearing price.
D) horizontal distance from the vertical (price) axis to the equilibrium quantity.
B
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A monopoly firm is a price
a. taker and has no supply curve. b. maker and has no supply curve c. taker and has an upward-sloping supply curve. d. maker and has an upward-sloping supply curve.
Suppose the government decided to ease monetary policy, then increase taxes. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output.
A. lower; decrease B. lower; increase C. have an ambiguous effect on; increase D. lower; have an ambiguous effect on
Refer to the information provided in Scenario 22.5 below to answer the question(s) that follow.SCENARIO 22.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 22.5. The total cost of telephone service for residents of Achoo in 2017 is ________ Bugabucks. A. 5,150 B. 25,750 C. 103,000 D. 128,750
Using the midpoint method to calculate the price elasticity of demand eliminates the problem of computing:
A) total revenue when price falls and demand is elastic. B) total revenue when price falls and demand is inelastic. C) different elasticities, depending on whether price decreases or increases. D) different elasticities, because price and quantity are inversely related on the demand curve.