Refer to Figure 9.5. If the government establishes a price floor of $2.50 and farmers grow only the amount of berries that will be sold, total consumer and producer surplus will be
A) $1.50.
B) $300.
C) $450.
D) $500.
E) $600.
C
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Does the short-run Phillips curve have a positive or negative slope? Explain how this slope is derived
What will be an ideal response?
Which one of the following is an example of passive policy making?
A) introducing expansionary monetary policy to combat a recession B) introducing expansionary monetary policy to combat inflation C) introducing expansionary fiscal policy to combat a recession D) following a predetermined monetary policy rule
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna instead holds an oral auction between the two bidders and one bidder of each type shows up, she earn ___ from the auction
a. Just above $100 b. $100 c. Just above $70 d. $70
The total lag for fiscal policy tends to be shorter than the total lag for monetary policy
a. True b. False Indicate whether the statement is true or false