Use the figure below to answer the following question.
If a price ceiling in this market is set at P1, then deadweight loss equals area
A. f.
B. b + d.
C. d.
D. d + h.
Answer: C
Economics
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Figure 5-13
In Figure 5-13, the line AB is
A. an indifference curve. B. a budget line. C. a marginal utility curve. D. a demand curve.
Economics
Without enforcement, a contract
A) is binding. B) is lateral in form. C) is costless to enforce. D) not really binding.
Economics
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then real GDP equals:
A. $97 trillion. B. $98 trillion. C. $102 trillion. D. $101 trillion.
Economics
How does a decrease in government spending affect the aggregate expenditure line
What will be an ideal response?
Economics