Total consumer surplus in a market is measured as the
A) area bounded above the market clearing price and beneath the market demand curve.
B) area bounded below the market clearing price and above the market supply curve.
C) vertical distance from the horizontal (quantity) axis to the market clearing price.
D) horizontal distance from the vertical (price) axis to the equilibrium quantity.
A
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What is defined as the ability of a firm to earn high profits by raising and keeping the prices of its products substantially above the levels at which those products would be priced in competitive markets?
A. Economies of scope B. Tacit collusion C. Monopoly power D. Perfect competition
The price of services at Urban General falls by 10 percent.
a. Quantity demanded increases by 1.5 percent. b. Quantity demanded falls by 5.0 percent. c. Quantity demanded increases by 15.0 percent. d. Quantity demanded falls by 2.5 percent. e. Quantity demanded rises by 5.0 percent.
A Jackson Pollock painting can cost $1.2 million, whereas a poster reproduction of the same painting costs only about $15. The reason is that:
A. the total utility of Jackson Pollock paintings is greater than the total utility of Jackson Pollock posters. B. the opportunity cost of Jackson Pollock paintings is greater than the opportunity cost of Jackson Pollock posters. C. Jackson Pollock paintings have more substitutes than Jackson Pollock posters. D. the marginal utility of Jackson Pollock paintings is greater than the marginal utility of Jackson Pollock posters.
According to supply-siders, tax cuts should increase aggregate supply.
Answer the following statement true (T) or false (F)