The aggregate demand for good X is Q = 20 - P. If the price rises from P = $4 to P = $5, what is the change in consumer surplus?

A) $4.50
B) $5.50
C) $15.50
D) $16

C

Economics

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Price reflects the value households place on a good and marginal cost reflects the ________ of the resources needed to produce a good.

A. opportunity cost B. productivity C. availability D. quantity

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A severe drought has devastated cocoa plants, causing an increase in the price of chocolate. In the market for chocolate chip cookies

A) a surplus will arise. B) supply has decreased and price has increased. C) quantity has decreased and price has decreased. D) quantity demanded has increased.

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