Figure 6.1If the good in Figure 6.1 were free:

A. consumer surplus would equal $450 and consumer expenditure would be $0.
B. consumer surplus and consumer expenditure would both be maximized.
C. consumer surplus and consumer expenditure would both be zero.
D. consumer surplus would be maximized but consumer expenditure would be impossible to calculate.


Answer: A

Economics

You might also like to view...

If a principle is reducing agency costs by gathering information about the agent's actions, he is most likely trying to solve the problem

a. Adverse selection b. Moral hazard c. Both of the above d. None of the above

Economics

When a country experiences high inflation and unemployment simultaneously, which of the following problems should be addressed first?

a. High price level b. High unemployment c. Low aggregate demand d. Low aggregate supply

Economics

If cyclical unemployment is eliminated in the economy, then

A) the economy is considered to be at full employment. B) the unemployment rate is below the natural rate of unemployment. C) the unemployment rate is above the natural rate of unemployment. D) the economy is at less than full employment.

Economics

The price at which the quantity supplied equals quantity demanded is the

A. market price. B. negotiated price. C. opportunity cost. D. equilibrium price.

Economics