If a seller's reservation value for a good is $10 and the price at which the good is sold is $15, his producer surplus is:
A) $25.
B) $150.
C) $1.5.
D) $5.
D
You might also like to view...
The U.S. has the largest trade deficit with China. How will a ban on trade with China affect the current account of the U.S.?
What will be an ideal response?
What is the term that describes a situation in which one party to an economic transaction has less information than the other party?
A) monopsony B) asymmetric information C) inefficient market hypothesis D) unequal market structure
Vault cash is equal to $8 million, deposits by depository institutions at the central bank are $2 million, the monetary base is $30 million, and bank deposits are $100 million. The money multiplier is equal to
A) 2.5. B) 3.0. C) 4.0. D) 5.0.
Other things equal, an appreciation of the Algerian dinar in relation to the euro will act to increase Algerian demand for European goods and to decrease European demand for Algerian goods
a. True b. False Indicate whether the statement is true or false