If demand is downward sloping and there is tax on the good, Consumer surplus equals
a. The area between the demand curve and the price, up to the equilibrium quantity.
b. Total surplus minus producer surplus.
c. Total surplus minus producer surplus and government tax revenue.
d. Total surplus minus producer surplus, government tax revenue, and dead-weight loss.
d. Total surplus minus producer surplus, government tax revenue, and dead-weight loss.
Economics
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An increase in the discount rate will lead to a decrease in the money supply
a. True b. False
Economics
Refer to the figure. Assuming this market is representative of the economy as a whole, a negative demand shock will:
A. cause inflation.
B. increase unemployment.
C. lower prices but leave output unaffected.
D. reduce both prices and output.
Economics