Refer to the graph shown. Initially, the market is in equilibrium where the demand curve intersects S0. In the initial equilibrium, consumer surplus is equal to:
A. 2,250.
B. 3,000.
C. 1,500.
D. 750.
Answer: C
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How do advertising and other selling costs affect a firm?
A) They shift the marginal cost curve upward. B) The only effect is that the excess capacity is reduced. C) The only effect is that the demand for the product increases. D) They shift the average total cost curve upward. E) The do not change demand and shift the average total cost curve downward.
Traffic lights would be considered:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
In this graph, output level RGDP2 is ______.
a. sustainable at equilibrium point E1
b. sustainable at equilibrium point e2
c. sustainable at equilibrium point E3
d. not sustainable at equilibrium points E1, e2, or E3
_____ has a causal effect on _____.
A. Income; unemployment B. Height; health C. Income; consumption D. Age; wage