The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the total subsidy paid to tomato farmers?
A) area E
B) area B + area C + area D + area F
C) area C + area D + area E + area G
D) area A
E) area F
C
Economics
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What effect does an increase in the interest rate have on the opportunity cost of holding money and on the demand for money curve?
What will be an ideal response?
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The marginal revenue that would be derived from producing a fifth unit of output is
A. $18.
B. $16.
C. $14.
D. $12.
Economics