If the price of a good is above its equilibrium level, then
a. quantity demanded exceeds the quantity supplied
b. there will be an excess demand
c. quantity supplied exceeds quantity demanded
d. the price will have to increase to establish equilibrium
e. demand will shift to the left
C
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On a line chart, the income of a consumer is measured along the horizontal axis, and his consumption is measured along the vertical axis. The slope of the line is equal to:
A) change in consumption plus change in income. B) change in consumption minus change in income. C) change in consumption multiplied by change in income. D) change in consumption divided by change in income.
Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.