Refer to Figure 10.2. At output Qm, and assuming that the monopoly has set her price to maximize profit, the consumer surplus is:

A consequence of an inflationary gap is ____ as output begins to decrease and prices continue to increase.

A. stagflation B. reflation C. disinflation D. perflation

The figure above shows a firm in a perfectly competitive market. If the price rises from P3 to P4 then output will increase by

A) 0 units. B) 1 unit. C) 2 units. D) 3 units.