Refer to the graph shown. An effective price ceiling at Pc causes producer surplus to:
A. fall from areas A + B + E to area A.
B. fall from areas C + D + F to area D.
C. change from areas C + D + F to areas B + C + D.
D. change from areas A + B + E to areas A + B + C.
Answer: B
You might also like to view...
Asymmetric information is a form of
A) market imperfection. B) regulatory arbitrage. C) capital market liberalization. D) financial sector deregulation.
The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
An elasticity of 0.75 means that a 1% change in price will lead to a ____% change in quantity demanded.
A. 0.25 B. 0.75 C. 2.5 D. 7.5
The portion of a corporation's profits that a firm pays out each period to its shareholders is a
A. capital gain. B. dividend. C. promissory note. D. corporate bond.