Refer to Figure 9.6. Before this policy was implemented, consumer surplus was
A) $20.
B) $4000.
C) $6000.
D) $8000.
E) $12000.
B
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Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) The time period under consideration is short. B) The good is a necessity. C) The expenditure on the good is small relative to one's budget. D) A wide variety of substitutes are available for the good.
Which of the following questions or statements regarding medical school is normative?
A) How do changes in expected future incomes affect the decisions of medical students about which specialty to choose? B) What role does tuition play in a student's decision about whether to attend medical school? C) Have tuition increases had a large effect or a small effect on the number of applications to medical school? D) Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care.
Faced with an uncertain situation, the best decision for a person obeying the von-Neumann Morgenstern axioms: a. minimizes loss relative to the status quo
b. minimizes variability across possible outcomes. c. maximizes the expected payoff. d. maximizes expected utility.
Which of the following occurs when a consumer equilibrium has been achieved? a. The marginal utility of the last unit purchased is identical for all goods
b. The price of the last unit purchased is identical for all goods. c. An equal amount of income is spent on all goods purchased. d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.