The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000
B) $400,000
C) $200,000
D) $100,000
E) $1,800,000
D
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When a tax is imposed on an item, it can generally be said that the incidence of the tax is
A. entirely on the buyer. B. entirely on the seller. C. on both the buyer and seller. D. not determined in this manner.
Refer to the scenario above. Real GDP of the country has grown by ________
A) 0.2% B) 10% C) 5% D) 20%
If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will
A) increase the quantity supplied by 3.33 percent. B) increase the quantity supplied by 30.0 percent. C) increase the quantity supplied by 0.33 percent. D) decrease the quantity supplied by 30.0 percent.
Joint production is production that results in the simultaneous production of ________.
A) exactly three outputs B) exactly one output C) exactly two outputs D) two or more outputs