With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:







A. then the policy was effective since consumers gained in surplus overall.

B. then the policy was ineffective since consumers gained in surplus overall.

C. then the policy was ineffective since consumers lost surplus overall.

D. then the policy was effective since consumers lost surplus overall.


Answer: v

Economics

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In general, with a monopolist's outcome:

A. consumers lose surplus. B. monopolies earn profit. C. deadweight loss occurs. D. All of these statements are true.

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The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at aggregate markets while macroeconomics is concerned with individual markets. b. macroeconomics is concerned with policy decisions while microeconomics applies only to theory

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Economics

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Economics