Consumer surplus is equal the area below the _________ and above___________
A. Price; Supply Curve
B. Demand Area; Price
C. Demand Curve; Supply Curve
D. Price; Demand Curve
E. Supply Curve; Demand Curve
B. Demand Area; Price
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"The recent hurricanes in Florida are bringing financial gain to California citrus growers. Due to extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever"
Which of the following statements best explains the economics of this quotation? A) The supply of Florida oranges decreased, causing their price to increase, which then increased the demand for substitute California oranges. B) The supply of Florida oranges decreased, causing the supply of California oranges to increase and the price of California oranges to rise. C) The demand for Florida oranges decreased because of the hurricanes, causing a greater demand for California oranges and an increase in the price of California oranges. D) The demand for Florida oranges decreased, causing their prices to rise, therefore increasing the demand for California oranges.
Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates:
A. the percentage change in quantity demanded will equal the percentage change in price. B. the percentage change in quantity demanded will equal one. C. both the percentage change in price and quantity demanded must equal one. D. the percentage change in quantity demanded and the percentage change in price must sum to one.
If, regardless of price, the quantity supplied is a constant amount, then the supply curve is:
A. horizontal. B. vertical. C. upward sloping. D. downward sloping.
Distinguish M1 from M2.
What will be an ideal response?