In the above figure, the individual's consumer surplus will be highest if
A) the price of ice cream is $5 per gallon.
B) the price of ice cream is $3 per gallon.
C) the price of ice cream is $2 per gallon.
D) ice cream is free.
D
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What is the macroeconomic consequence if firms accumulate large amounts of unplanned inventory at the beginning of a recession?
What will be an ideal response?
The demand curve a monopolist faces is
A) horizontal. B) the industry demand curve. C) vertical. D) inelastic at all points.
Which is least likely to help in understanding who bears the tax incidence?
A. Supply elasticity B. Demand elasticity C. Who the tax is levied on D. Whether or not supply is fixed
Government intervention may be appropriate to correct market outcomes because of
A. Externalities. B. Production possibilities. C. Private goods. D. None of the choices are correct.