Assume a market that has an equilibrium price of $4. If the market price is set at $8, which of the following is true?
A. Some surplus is transferred from consumers to producers, but total surplus falls.
B. All surplus is transferred from consumers to producers, and total surplus stays the same.
C. Some surplus is transferred from producers to consumers, but total surplus falls.
D. Some surplus is transferred from consumers to producers, causing total surplus to increase.
A. Some surplus is transferred from consumers to producers, but total surplus falls.
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A study of the per capita consumption of gasoline: in 10 countries demonstrates that:
A. the consumption of gasoline does not appear to be related to the price of gasoline. B. higher gasoline prices reduce consumption in some of those countries, but not in others. C. higher gasoline prices do result in lower consumption of gasoline. D. higher gasoline prices actually increase the consumption of gasoline.
________ is a market structure where only one firm provides a good or service that has no close substitutes
A) Oligopoly B) Monopoly C) Perfect competition D) Monopolistic competition