The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the deadweight loss?
A) area B + area C + area D + area F
B) area E
C) area C + area D + area E + area G
D) area A
E) area F
B
You might also like to view...
If real disposable income is $300 billion and real consumer expenditures are $250 billion, it can be assumed that
a. the government is spending the difference. b. the difference is being invested. c. households are saving the difference. d. transfer payments make up the difference.
There are many reasons why monopolies arise. Which of these is not one of them?
In the United States, the use of fiscal policy tools to stabilize the economy gained prominence during:
A. the depression era. B. the Kennedy administration. C. the Reagan administration. D. the Clinton administration.
In the United States, the average length of time people spend unemployed is
A) approximately one month. B) between two and three months. C) between ten and eleven months. D) greater than twelve months.