The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero.
B) the triangle ABE.
C) the triangle BCE.
D) the triangle ACE.
E) the triangle BCE minus the triangle ABE.
A
Economics
You might also like to view...
The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is
A) 500 shoes. B) 1 DVD. C) 1/2 of a shoe. D) 20 shoes. E) 2 shoes.
Economics
If a bank receives a new deposit of $10,000 . and the required reserve ratio is 25 percent, then the new money that can be created by the banking system, including the initial deposit, is:
a. $25,000. b. $2,500. c. $4,000. d. $40,000. e. $10,000.
Economics