A negative demand shock increases consumer and investment spending and tends to increase the budget deficit.
Answer the following statement true (T) or false (F)
False
You might also like to view...
The above figure shows the demand and marginal cost curves for a monopoly. Under monopoly, consumer surplus equals
A) a + b. B) a + b + c. C) a + b + c + d + e + f. D) None of the above.
What must be true for a consumer to buy a good or service?
A) The price must be equal to or less than the marginal benefit. B) The total benefit received must equal the total spent to buy the good or service. C) The consumer must be able to obtain some consumer surplus. D) The consumer must not be able to produce the product. E) The price must be equal to or greater than the marginal benefit.
Whenever a firm can charge a price greater than marginal cost
A) the firm must be a monopolist. B) consumers have the ability to choose a close substitute. C) there is some loss of economic efficiency. D) the firm will earn economic profits.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer surplus to producer surplus.
B. area C is lost consumer surplus due to fewer transactions taking place.
C. area E is lost producer surplus due to fewer transactions taking place.
D. All of these are true.