The above figure shows the U.S. market for chocolate. With no international trade, consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
B
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Henry Leland
A. was the first automobile producer to use the movable assembly line. B. was the first automobile producer to manufacture a standardized engine with interchangeable parts. C. sold millions of cars at a small unit of profit that allowed his company to dominate the industry. D. all of the choices are true.
Assume the economy is initially in equilibrium where potential GDP is greater than real GDP
If the expected inflation rate, the term structure effect, and the default-risk premium are constant, a decrease in the Fed's target short-term nominal interest rate will ________ the MP curve and the output gap will become ________. A) shift up; smaller B) shift up; larger C) shift down; smaller D) shift down; larger
Most Americans experience significant fluctuations in their economic well-being from one year to the next
a. True b. False Indicate whether the statement is true or false
Suppose that Dianne Lindsay spends all her income on two goods, A and B, in a manner in which the marginal utility to price ratios are not equal, MUa/Pa is greater than MUb/Pb. If at that time the price of A is higher than the price of B, then she
a. is already maximizing her total utility and should make no change b. should increase her purchases of B and decrease her purchases of A because the price of A is higher c. should increase her purchases of B and decrease her purchases of A because the marginal utility of A is higher d. should lower the price of good A relative to good B e. should increase her purchases of A and decrease her purchases of B