When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded

The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. How much producer surplus is lost?

A) $10,000 B) $20,000 C) $25,000 D) $40,000

Dollarization is a policy action that

A) tries to stabilize the value of the local currency vs. the U.S. dollar. B) adopts the currency of another country as the national medium of exchange. C) mimics policy actions taken by the U.S. Federal Reserve. D) outlaws the holding of foreign currencies other than the U.S. dollar.