If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:
a. both consumer and producer surplus will decrease.
b. both producer and consumer surplus will increase.
c. consumers will gain at the expense of producers.
d. producers will gain at the expense of consumers.
e. there will be no change in the sum of producer and consumer surplus, although its division may change.
a
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Which of the following is included in GDP, but may not have been economically beneficial?
a. Building schools b. Water treatment plant construction c. Residential alarm installations d. Airport construction
In Okunland, a country whose economy operates according to Okun's law, real GDP equals $7,520 billion, potential GDP equals $8,000 billion, and the actual unemployment rate is 8 percent. What is the natural rate of unemployment in Okunland?
A. 2 percent B. 11 percent C. 6 percent D. 5 percent
The supply of antiques is highly inelastic so increases in demand have a large effect on increases in price.
Answer the following statement true (T) or false (F)
Which of the following is not an example of a fungible commodity?
A. Electricity B. Money C. Wheat D. All of these are fungible commodities.