In the above figure, if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then area C + area E is equal to

A) deadweight loss.
B) consumer surplus.
C) total surplus.
D) producer surplus.
E) total revenue.

A

Economics

You might also like to view...

The purchasing power of the dollar

A) varies directly with the purchasing power of other major currencies such as the euro and the Japanese yen. B) varies inversely with the price level. C) varies directly with the price level. D) varies directly with the price of gold.

Economics

A major characteristic of monopolistic competition is that prices will be _____.

(A) Unrelated to the type of competition. (B) Higher than in a true monopoly. (C) Higher than in perfect competition. (D) Lower than in perfect competition.

Economics