The figure above shows Cindy's demand for CDs per year
a. What is Cindy's consumer surplus on all the CDs consumed if the price of a CD is $12?
b. What is Cindy's consumer surplus on all the CDs consumed if the price of a CD is $9?
c. What happens to Cindy's consumer surplus when the price of a CD falls?
a. Her consumer surplus when the price of a CD is $12 equals $15, the area of the triangle under the demand curve and above the price.
b. Her consumer surplus when the price of a CD is $9 equals $60, the area of the triangle under the demand curve and above the price
c. As the price of a CD falls, Cindy's consumer surplus increases. This result reflects the observation that consumers are better off when prices are lower.
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In the United States, monopoly regulation began primarily because:
a. there were no natural monopolies in the real world. b. the government wanted to promote other forms of business practices. c. monopolies did not typically follow occupational and safety rules. d. monopolies tended to restrict output and raise prices. e. most economists believed that the majority of industries were following the purely competitive model.
What are the two types of discretionary fiscal policy?
A) automatic and expansionary B) expansionary and contractionary C) expansionary and recessionary D) automatic and contractionary