Consumer surplus measures
A) the extra amount that a consumer must pay to obtain a marginal unit of a good or service.
B) the excess demand that consumers have when a price ceiling holds prices below their equilibrium.
C) the benefit that consumers receive from a good or service beyond what they pay.
D) gain or loss to consumers from price fixing.
C
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Compared to an efficient perfectly competitive industry, the monopolist will
A) produce less output at a higher total cost. B) produce less output and charge a higher price. C) produce more output at a higher price and higher profit. D) produce more output at a lower price.
An inferior good or service is any good or service for which:
a. an increase in price causes an increase in the quantity demanded. b. a decrease in price causes an increase in demand. c. an increase in price causes a decrease in the quantity demanded. d. an increase in the amount consumed causes a decrease in marginal utility. e. an increase in income causes a decrease in demand.