When the price of the product falls
a. consumer's surplus remains the same.
b. producers' surplus increases.
c. consumer's surplus falls.
d. producer's surplus falls.
d
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
The federal income tax is progressive because poor people pay little or no taxes
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. The most important determinant of the value of an acre of land is its location. B. The supply of land is virtually fixed. C. Land is not a resource; only the minerals that are found under it are resources. D. A firm's demand for land is its marginal revenue product schedule for land.
If a monopolist's marginal revenue is $35 per unit and its marginal cost is $25, then
A) to maximize profit the firm should increase output. B) to maximize profit the firm should decrease output. C) to maximize profit the firm should continue to produce the output it is producing. D) Not enough information is given to say what the firm should do to maximize profit.