In Figure 6.7 with a quantity constraint of Q1, producer surplus is area:
A. A.
B. A + B + C.
C. E + F + G.
D. G.
Answer: D
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When only a small number of producers compete with each other is a defining characteristic of
A) inelastic supply. B) monopolistic competition. C) efficient competition. D) oligopoly.
According to the Keynesian view, the focus of stabilization policies
a. is to keep the economy at its equilibrium level in the face of shocks to aggregate demand. b. should be to keep the economy at its equilibrium level in the face of shocks to aggregate supply. c. is on the short run. d. All of the above
Other things the same, if the expected return on U.S. assets increases, the
a. supply of dollars in the market for foreign-currency exchange shifts right. b. supply of dollars in the market for foreign-currency exchange shifts left. c. demand for dollars in the market for foreign-currency exchange shifts right d. demand for dollars in the market for foreign-currency exchange shifts left.
If the slope of a demand curve is constant, then so is the elasticity on that demand curve.
Answer the following statement true (T) or false (F)