Assume the demand curve is line AD. If price is OF, the consumer surplus is bounded by letters
A. OAFB.
B. OACE.
C. FBD.
D. ECD.
C. FBD.
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Last year the CPI was 177.1 and this year the CPI was 180.9. What is the inflation rate between these two years?
What will be an ideal response?
If production of a good produces an external benefit, in order for the marginal social cost to equal the marginal social benefit
A) the good should be taxed. B) permits should be required to purchase the good. C) the good could be subsidized. D) the government needs to take no action.
An income effect comes about because a price reduction of one product increases a consumer's real income.
Answer the following statement true (T) or false (F)
Refer to the graph shown. With an effective price floor at $8, total surplus is reduced by:
A. 45. B. 100. C. 90. D. 25.