According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. producer surplus will change from (D + E) to (D + E + B + C).
B. producer surplus will change from (B + C + D + E) to D only.
C. producer surplus will change from (D + E) to (D + B).
D. producer surplus will change from (D + B) to (D + E).
C. producer surplus will change from (D + E) to (D + B).
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For any given consumption function, autonomous consumption is equal to the level of consumption associated with:
a. negative disposable income. b. positive disposable income. c. zero disposable income. d. unstable disposable income.
Assume an economy moves from E1 to e2 to E3. Which of the following statements accurately describes the situation shown?
a. The economy recovers from the recessionary gap by moving from E1 to e2.
b. The economy begins and ends in both short-run and long-run equilibrium.
c. The economy recovers from the recessionary gap by moving from E3 to e2.
d. The economy begins in long-run equilibrium but ends in a recessionary gap.
When money is used to set the value of goods such as cars, and TVs, money is serving as a:
A. unit of account. B. medium of exchange. C. store of wealth. D. unit of wealth.
The price charged by a monopolist is socially inefficient because the price
A) exceeds the true marginal cost of the resources used. B) is less than the opportunity cost of the resources used. C) puts the monopolist into a higher tax bracket. D) is too low.