An indifference curve shows various combinations of two factors of production that give the same level of output per unit of time

Environmental policies like corporate average fuel economy (CAFE) standards and mandatory technology like catalytic converters _____________________ fuel consumption and emissions without necessarily _________________ the number of automobiles sold.

a. increase; reducing b. increase; increasing c. reduce; reducing d. reduce; increasing e. None of the above.

Refer to Figure 4-6. What is the value of consumer surplus after the imposition of the price floor?

A) $1,500 B) $2,700 C) $4,500 D) $5,700