Refer to Figure 4-11. What is the value of consumer surplus after the imposition of the price floor?
A) $1,500 B) $2,700 C) 4,500 D) $5,700
A
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According to Robert Higgs,
a. World War II was a period of unique prosperity. b. prosperity came only after World War II ended. c. measures of GDP during World War II are accurate. d. civilian consumption of most items actually rose during World War II.
In which of the following situations will the profit of a perfectly competitive firm always increase with an increases in its output?
a. When price is greater than marginal revenue b. When price is less than marginal revenue c. When price is greater than marginal cost d. When price is less than marginal cost e. When price is equal to marginal cost
If the output effect from increased production is larger than the price effect, then an oligopolist would increase production
a. True b. False Indicate whether the statement is true or false
The effects of a decline in the value of financial assets, such as stocks, on consumption and the economy might be offset by
a. increasing government spending. b. decreasing the money supply. c. increasing taxes. d. undertaking no policy action.