The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, consumer surplus will be
A) a.
B) a + b + f.
C) a + b + c.
D) a + b + c + f + g.
C
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Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars
The nominal exchange rate between the two countries is A) 0.50 marks/pound. B) 0.66 marks/pound. C) 1.50 marks/pound. D) 2.00 marks/pound.
According to the Taylor rule, which of the following will lead to the largest increase in the nominal federal funds rate?
A) a two percentage point increase in the target inflation rate B) a one percentage point decrease in the target inflation rate C) a one percentage point increase in output D) a two percentage point decrease in output E) a one percentage point increase in the inflation rate
John spends exactly the same dollar amount on candy bars each week, regardless of their price. John's demand curve for candy bars is
a. upward-sloping b. backward-bending c. perfectly inelastic d. perfectly elastic e. unit elastic
Public choice theory assumes that government makes optimal policies to respond to the shortcomings of private markets
a. True b. False