Refer to the graph shown. If consumers had to pay $13 per unit for this product instead of $10 per unit, consumer surplus would fall from:

A. 1,125 to 810.
B. 1,500 to 810.
C. 1,125 to 405.
D. 2,250 to 1,125.

Answer: C

Economics

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When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production, which of the following is being used?

A) Save domestic jobs argument B) National security argument C) Dumping argument D) Infant-industry argument E) Diversity and stability argument

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Use a figure to explain the potential effectiveness of fiscal policy to spur on the economy under a fixed exchange rate

What will be an ideal response?

Economics