Refer to the accompanying figure. What is total consumer surplus at the market equilibrium?
A. $80 per day
B. $160 per day
C. $6 per day
D. $240 per day
Answer: A
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Decision making on the margin involves
A) comparing the marginal cost and marginal benefits when making a decision. B) comparing the total cost and the total benefit when making a decision. C) eliminating the additional cost when making a decision. D) determining the total benefits of a decision. E) comparing the benefits from the social interest to the benefits from the person's self-interest.
If a single firm in a price-taker market lowers its price below the market equilibrium price,
a. it will get a larger share of the market. b. it will lose revenue without increasing the quantity it can sell. c. other firms will lower their prices. d. other firms will be driven out of the industry.
Macro controversies focus primarily on the:
A. Level of interest rates. B. Federal budget deficit. C. Potential to shift aggregate demand and supply. D. Potential to change imports and exports.
Identify the correct statement.
A. Freer trade in environmental services actually lowers environmental quality, especially in the developing countries. B. There is sufficient evidence to prove that free trade simply promotes production and consumption of products that tend to cause large amounts of pollution. C. It is not easy to find cases where government policies that limit or distort trade result in environmental damage. D. Environmentalists often fear that free trade permits production to be shifted to countries that have lax environmental standards.