The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is called the
a. producer surplus
b. substitution effect
c. price discrimination
d. income effect
e. consumer surplus
E
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The conditions for successful price discrimination include
a. some ability for the firm to set the price. b. strong barriers segmenting markets. c. an inability for any customer to resell the product. d. All of the above.
What can be concluded about the total profit?
a. It would be greater if the cartel members raised their output.
b. It would be greater if the ATC was higher.
c. It would be shared by the cartel members.
d. It would be maximized at P* = ATC.
The dates of the "official" peaks and troughs of business cycles in the United States are determined by the:
A. Congressional Budget Office. B. Federal Reserve Board. C. Council of Economic Advisers. D. National Bureau of Economic Research.
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; raise; decline B. decline; lower; decline C. decline; lower; expand D. increase; raise; decline