How do economists calculate consumer surplus for the entire market?
a. by subtracting the consumer surplus of all buyers from the producer surplus of all producers
b. by adding individual consumer surpluses for all consumers who have purchased the good
c. by subtracting the market price at the beginning of the year from the market price at the end of the year
d. by multiplying the market price of the good by the sales tax rate applied to the good
b. by adding individual consumer surpluses for all consumers who have purchased the good
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. Stan's ideal mixture is to
A) "shoot 1" every time since Kyle is the "odd" player. B) "shoot 2" every time since he is the "even" player. C) "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) Stan's ideal mixture depends on Kyle's ideal mixture.
Under what conditions could minimum wage laws lead to increases in unemployment?