Refer to the figure above. What is the consumer surplus in the market?
A) $60
B) $90
C) $120
D) $160
C
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Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
A) A + B B) B C) A D) B + C
If the Fed conducts an open market purchase of bonds, the
a. money supply decreases as reserves are injected into the banking system b. demand for money increases as reserves are drained from the banking system c. demand for money decreases as reserves are injected into the banking system d. money supply increases as reserves are injected into the banking system e. money supply increases as reserves are drained from the banking system
Which of the following is correct?
a. Economic fluctuations are easily predicted by competent economists. b. Recessions have never occurred very close together. c. Spending, income, and production do not fluctuate closely with real GDP. d. None of the above is correct.
Which of the following is closest to being a full economic union?
A. The North American Free Trade Agreement (NAFTA) B. The Trans-Pacific Partnership C. The Southern Common Market (MERCOSUR) D. The European Union (EU)