Refer to Figure 6.4. Suppose that the current price is set at C and Q1 units of a good are traded. Which of the following statements is incorrect?
A. The quantity supplied is smaller than the quantity demanded.
B. A buyer's willingness to pay is greater than a seller's willingness to accept.
C. The producer surplus would increase should the price rise.
D. Total surplus would increase should the price fall.
Answer: D
You might also like to view...
Refer to Figure 15-2. The firm's profit-maximizing price is
A) P1. B) P2. C) P3. D) P4.
When we consider our savings, interest rates _________ and inflation rates ___________ the value.
A. increase; decrease B. decrease; increase C. increase; increase D. have no real effect; decrease
Refer to the graph shown. The welfare loss of monopoly is:
A. 2,112.5. B. 1,137.5. C. 2,762.5. D. 1,381.25.
Though Nash games are noncooperative, a cooperative outcome is more likely if
A. firms can easily monitor the outcomes from cooperation. B. firms can easily monitor the outcomes from rivals' defection. C. firms expect the market relationship to last only for a short time. D. the long-run gains are smaller than the short-run gains.