When looking at this graph for the welfare effects of a subsidy, a 50 percent decrease in the size of area F would mean ______.
a. consumer surplus increased
b. deadweight loss increased
c. quantity produced decreased
d. overall efficiency decreased
c. quantity produced decreased
Economics
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In the model of an oligopoly with identical (homogeneous) products, what is the price likely to be?
What will be an ideal response?
Economics
A supply shock, such as the OPEC oil-price increases in the 1970s,
A) can lead to accelerating inflation, if an accommodation policy tries to maintain the pre-shock level of real GDP. B) will cause lower real wages in long-run equilibrium. C) will reduce the natural level of real GDP. D) both B and C
Economics