Consumer surplus:
a. is minimized in market equilibrium.
b. measures the value between the actual selling price of a product and the price at which sellers are willing to sell the product.
c. measures the value between the price consumers are willing to pay for a product and the price they actually pay.
d. measures the price at which sellers extract excess profits from consumers.
c
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From an economic perspective, there is "too little" pollution in a market if
a. The profits of businesses are not maximized b. The marginal benefits of a polluting activity exceed the marginal costs c. The marginal costs of a polluting activity exceed the marginal benefits d. The net social benefits of pollution are zero e. The net private benefits of pollution are zero
Supply of a food item increases by more than the demand for the food item increases. One thing for certain is that
A) the price of the food item rises. B) income elasticity of demand is less than 0. C) the supply curve is price inelastic. D) real income falls as a result. E) none of the above