This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
A. Area BC would be transferred to the consumer.
B. Area BC would be transferred to the producer.
C. Area BCD would be transferred to the consumer.
D. Area BCD would be transferred to the producer.
Answer: B
You might also like to view...
Refer to Table 18-1. Suppose a series of votes are taken in which each pair of alternatives is considered in turn. If the vote is between allocating funds to research on Alzheimer's and increased border security
A) Jasmine and Rose vote for Alzheimer's research, Ivy votes for increased border security, and Alzheimer's research wins. B) Ivy and Jasmine vote for Alzheimer's research, Rose votes for increased border security, and Alzheimer's research wins. C) Jasmine and Ivy vote for increased border security, Rose votes for Alzheimer's research, and increased border security wins. D) Ivy and Rose vote for increased border security, Jasmine votes for Alzheimer's research, and increased border security wins.
Why is the supply of loanable funds often interest inelastic?
Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed ________ and the number employed ________.
A. increases; does not change B. increases; increases C. increases; decreases D. decreases; increases
According to the textbook, the owners of restaurants encourage tipping in order to:
A. solve a commitment problem with their wait staff. B. avoid playing a dominated strategy. C. sustain cooperation in a repeated prisoner's dilemma. D. insure that their waiters earn enough money.