Use the table below to answer the following question.ProducerMinimum Acceptable Product PriceActual Product Price (Equilibrium Price)Kimberly$6$13Drake713Nicki913Victoria1113If the equilibrium price increases, the
A. consumer surplus will increase.
B. producer surplus will decrease.
C. producer surplus will increase.
D. allocative efficiency will increase.
Answer: C
You might also like to view...
A period of very high and accelerating inflation is known as
A) deflation. B) disinflation. C) hyperinflation. D) nuclear inflation.
Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?
What will be an ideal response?
Financial systems have all but which of the following in common?
A) market-oriented emphasis B) payments systems C) central banks D) information asymmetries
Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 6 ? Q. If each firm's cost function is Ci(Qi) = 6 + 2Qi, then each firm will symmetrically produce ________ units of output and earn ________.
A. 2 units; losses of $6 B. 4 units; losses of $2 C. 4 units; profits of $6 D. 2 units; profits of $2