Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units
What is the value of economic surplus in this market?
A) $600 thousand B) $1,050 thousand C) $1,500 thousand D) $2,100 thousand
A
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Which of the following situations will arise in the domestic market following the imposition of a tariff?
A) imports decrease, domestic production increases, prices decrease B) imports decrease, domestic production increases, prices increase C) imports increase, domestic production decreases, prices decrease D) imports increase, domestic production increases, prices increase
Because of automatic stabilizers, _____
a. fiscal policy focuses on maintaining an annually balanced budget b. planning discretionary fiscal measures to reduce economic fluctuations is easy c. government budget deficits are zero if averaged out over the entire business cycle d. policy makers should be concerned less with balancing the budget annually e. government budget deficits are smaller during expansions and larger during contractions