According to the graph shown, consumer surplus is:
A. $10.
B. $15.
C. $20.
D. $30
B. $15.
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A firm is currently producing at a level where its MC = 10 and its MR = 5. We can conclude that this firm is
a. profit maximizing. b. under-producing. c. over-producing. d. no definite conclusion can be made about the firm's level of production.
A decrease in consumer wealth will
A) not change autonomous consumption and rotate the consumption function upward. B) decrease autonomous consumption and shift the consumption function downward. C) not change autonomous consumption and rotate the consumption function downward. D) increase autonomous consumption and shift the consumption function upward.
Refer to Figure 9.1. Assume the economy is initially at point A. The initial change resulting from a recession caused by an increase in oil prices is best represented by which short-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y3 C) P2; Y3 D) P3; Y2
The production possibilities curve suggests that a nation cannot live beyond its means or production potential. Explain why international trade would cause this statement to be modified
Please provide the best answer for the statement.