Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
A) B + C B) A + B C) B D) A
C
You might also like to view...
How would the Fed's reduction of the reserve ratio requirement affect the money supply?
What will be an ideal response?
Which of the following is likely to lead to a left shift in the supply curve for labor to a firm?
A) The introduction of labor-saving technology B) The establishment of a new firm nearby that offers higher wages C) An increase in the opportunity cost of leisure D) The introduction of labor-complementary technology
Explain the total revenue test
What will be an ideal response?
Figure 10-18
Given the shift of the aggregate demand curve from AD1 to AD2 in , the real GDP and price level (CPI) in long-run equilibrium will be
a.
$10 billion and 200.
b.
$4 billion and 150.
c.
$10 billion and 150.
d.
$10 billion and 100.