In the above figure, if the market price rises from $100 to $125 per ton of wheat, then producer surplus
A) decreases.
B) does not change.
C) increases.
D) might increase, decrease, or not change depending on how the demand curve for wheat shifts.
C
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Which of the following did NOT play a role in keeping Greece from defaulting between 2010 and 2012?
A) International Monetary Fund B) United Nations C) European Union D) European Central Bank
Refer to Figure 10.3. A positive demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE1 to AE2; a movement from point A to point B D) a shift from AE1 to AE3; a movement from point A to point C
Which of the following statements is TRUE?
A. There is a direct relationship between investment and the interest rate. B. There is no relationship between investment and the interest rate. C. There is an inverse relationship between investment and the interest rate. D. Investment is always less than savings.
The crowding-out effect from government borrowing to finance the public debt is reduced when:
A. The economy is experiencing a period of high inflation B. The economy is operating at the full-employment level of output C. Public investment complements private investment D. Public investment substitutes for private investment