Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. Producer surplus changes by the area [E + F] if price goes from equilibrium to
A. P1.
B. P3.
C. < P1.
D. > P3.
Answer: A
You might also like to view...
When comparing a $100 billion increase in government expenditure to a $100 billion decrease in tax revenue, the effect of the increase in government expenditure on aggregate demand is
A) greater than the effect of the tax decrease. B) equal to the effect of the tax decrease. C) less than the effect of the tax decrease. D) positive whereas the effect of the tax decrease is negative. E) negative whereas the effect of the tax decrease is positive.
A monopolistically competitive firm is producing an output level at which marginal revenue is less than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses
a. increase, increase b. increase; decrease c. decrease; increase d. decrease; decrease e. increase; not change
Wendy retails motor homes, which she buys for a sum that does not vary with the number she purchases from the manufacturer. She can sell eleven per week at $40,000 . If she limits sales to ten, she can charge $41,000 each. She will sell eleven per week if the cost of each vehicle is no more than
a. $20,000. b. $30,000. c. $40,000. d. $41,000.
The period between the implementation of a policy and its intended result is known as
A. the effect time lag. B. the action time lag. C. the data lag. D. the recognition time lag.