In a supply-and-demand graph, producer surplus can be pictured as the
A) vertical intercept of the supply curve.
B) area between the demand curve and the supply curve to the left of equilibrium output.
C) area under the supply curve to the left of equilibrium output.
D) area under the demand curve to the left of equilibrium output.
E) area between the equilibrium price line and the supply curve to the left of equilibrium output.
E
You might also like to view...
Compared to monopoly pricing, an optimal two-part tariff
A) equates marginal revenue and average revenue. B) reduces economic efficiency. C) eliminates the deadweight loss. D) increases consumer surplus.
Which of the following models has as its central idea that workers and firms have rational expectations?
A) the new classical model B) the monetarist model C) the real business cycle model D) the new Keynesian model
The law of supply states that:
a. there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. b. there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. c. there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. d. at a lower price, a greater quantity will be supplied.
Illegal immigrants to the U.S. usually charge higher wages than their American counterparts
a. True b. False Indicate whether the statement is true or false