Suppose the market supply curve is p = 5 + Q. If price increases from 10 to 15, the change in producer surplus is
A) 12.5.
B) 5.
C) 50.
D) 37.5.
D
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The reason that higher interest rates reduce aggregate demand in an open economy with capital flows is that investment
A. increases generated by higher interest rates are offset by net export decreases. B. decreases generated by higher interest rates are coupled with net export decreases. C. decreases generated by higher interest rates are offset by net export increases. D. increases generated by higher interest rates are coupled with net export increases.
Which of the following statements best describes the domestic beneficiaries of international trade?
a. Over time, the average person gains from international trade as a worker, but not as a consumer. b. Over time, the average person gains from international trade, both as a worker and as a consumer. c. Over time, the average person gains from international trade as a consumer, but not as a worker. d. Over time, the average person does not gain from international trade, either as a worker or as a consumer.
A shift to the left of a supply curve is caused by:
What will be an ideal response?
Which of the following concerns is consistent with the Fed's policy initiative outlined in the In the News article titled " U.S. Federal Reserve Cuts Interest Rates to Historic Low"?
A. Concern about the lower interest rates harming the economy. B. Concern about inflationary pressures on the economy. C. Concern about mounting unemployment. D. Concern about desired spending exceeding current output.