Refer to the accompanying figure.If Zeynep's current budget constraint is BC2, and her budget for ham sandwiches and cheese sandwiches is $120, then the price of a cheese sandwich is:
A. $12.
B. $6.
C. $2.
D. $9.
Answer: B
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Which of the following statements is correct?
A) An increase in the money wage rate shifts the aggregate demand curve leftward. B) An increase in the price level shifts the aggregate demand curve leftward. C) An increase in the price level shifts the aggregate demand curve rightward. D) An increase in the quantity of the money shifts the aggregate demand curve rightward. E) An increase in the real interest rate shifts the aggregate demand curve rightward.
The total producer surplus in the entire market is given by the:
A) product of the individual seller's surplus. B) sum of all the individual sellers' producer surplus. C) area between the market supply curve and the market demand curve. D) area between the market demand curve and the price line.