Given the demand curve in this graph, if this product or service were free, how much consumer surplus would the individual receive?
A. $0
B. $1.50
C. $5.00
D. $10.50
D. $10.50
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Demand-pull inflation is caused by
A) aggregate demand increasing along an upward sloping or a vertical aggregate supply curve. B) aggregate demand decreasing along an upward sloping or a vertical aggregate supply curve. C) aggregate demand increasing along a horizontal aggregate supply curve. D) aggregate demand decreasing along a horizontal aggregate supply curve.
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
Refer to the above figure. Suppose the economy is at E. A stronger dollar leads to a lower real GDP. Which of the aggregate supply curves must be the relevant curve after the change in the value of the dollar?
A) 1 B) 2 C) 4 D) 5
A sudden increase in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Both B&C