Refer to Figure 4-9. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) E B) B + C C) B D) B + E
C
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What was the GATT, why was it established, and why and with what was it replaced?
What will be an ideal response?
The Maastricht Treaty, signed in 1992, initiated:
A) European political integration. B) an economic and monetary union that featured a common currency. C) an alliance of nations who opposed environmental harms from trade. D) an agreement for free flow of labor and other resources across borders.
Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?
a. $3
b. Between $3 and $5
c. Between $5 and $7
d. $7
Consider an auctioneer who is selling an item through an auction. It is known that the 10 risk-neutral bidders have independent private values that are uniformly distributed between $1,000 and $2,000. Based on this information, we can conclude that the expected revenue in this auction will be:
A. $2,000. B. $1,000. C. $1,900. D. There is insufficient information to determine the expected revenue.