Assuming the market is in equilibrium in the graph shown with demand D and supply S1, consumer surplus is:
A. greater than consumer surplus when market is in equilibrium at D and S2.
B. less than consumer surplus when market is in equilibrium at D and S2.
C. the same as consumer surplus when market is in equilibrium at D and S2.
D. zero.
B. less than consumer surplus when market is in equilibrium at D and S2.
You might also like to view...
Can economic theory prove national restrictions on international trade will reduce global welfare?
A) No, but it can demonstrate that they will reduce the welfare of the nations that impose the restrictions. B) No, but it can demonstrate that they reduce efficiency. C) No, but it can predict which groups will be made worse off or better off. D) Yes, if welfare is defined as economic welfare.
People make mistakes in allocating their time
a. because they always act irrationally b. despite always having expectations fulfilled c. only when leisure is a normal good d. because acquiring information is costly e. more often when the cost of making a mistake is high
What incentive is created by a first-come first-serve allocation scheme?
A) To engage in rent-seeking. B) To have the most income. C) To be first. D) To be elected.
If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be complements
a. True b. False Indicate whether the statement is true or false