Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, producer surplus is:
A. 28
B. less than the consumer surplus.
C. 16
D. $32.
C. 16
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Use the figure below to answer the following question.
If actual production and consumption occur at Q1 and the price is P1
A. deadweight loss equals area b. B. producer surplus equals area c + b. C. consumer surplus equals area a + b. D. consumer surplus equals area a.
Oligopolists
A. are price takers. B. rarely advertise. C. must take rivals’ reactions into account. D. offer homogeneous products.
Consumer surplus is given by the area:
a. above the supply curve but below the price b. below the supply curve c. below the demand curve but above the price d. below the demand curve e. none of the above
In the dollar-yen foreign exchange market, if Japanese companies sharply increase their importation of U.S. products, then the:
A. Supply of yen will decrease and the yen will appreciate B. Supply of yen will increase and the yen will depreciate C. Demand for yen will increase and the yen will appreciate D. Demand yen will decrease and the yen will depreciate