After a price floor of $23 is placed on the market in the graph shown, which area represents consumer surplus?
A. A + B + C + D
B. A
C. A + B + C
D. A + B
Answer: B
You might also like to view...
If the short-run equilibrium output of the United States exceeds the potential output, the Fed:
a. employs an active monetary policy to close a recessionary gap. b. employs an active monetary policy to close an expansionary gap. c. relies on a passive approach to close a recessionary gap. d. relies on a passive approach to close an expansionary gap e. employs an expansionary fiscal policy.
Which of the following is a possible cure for ongoing inflation?
a. The Fed could pursue anti-cyclical monetary policy. b. The Fed could increase money supply whenever the AD curve shifts to the right. c. The Fed could maintain a constant interest rate target regardless of economic circumstances. d. The Fed could always try to keep the unemployment rate below the natural rate. e. The Fed could pursue anti-cyclical fiscal policy.
What is meant by a "discriminating monopolist"?
a. The firm discriminates on the basis of hiring workers. b. The firm violates all antitrust laws. c. The firm evades taxes. d. The firm sells its product at different prices in different markets.
Which one of the following government actions is intended to generate positive externalities?
A. Subsidies for planting trees on hillsides B. Requiring autos to meet minimum emissions regulations C. Speed limits on the highways D. Taxing polluting industries