Consumer surplus
A. is the area below demand and above market price over all the units consumed.
B. is positive for all but the last unit purchased.
C. for a particular unit of consumption is computed by taking the difference between demand price and market price.
D. added to producer surplus provides a measure of the net gain to society from the production and consumption of the good.
E. all of the above
Answer: E
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In the simple deposit expansion model, if the required reserve ratio is 20 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by
A) $100. B) $250. C) $500. D) $1,000.
Maximizing surplus in a market depends not only on the amount bought and sold, but also on:
A. how productive the sellers are. B. who buys and sells it. C. what those consumers do with it. D. None of these statements is true.