Refer to the graph below. At equilibrium, the total revenues received by sellers would be represented by the area:
The equilibrium point in the market is where S and D curve intersect.
A. b
B. b + c
C. a + b
D. b + c + d
B. b + c
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When a service, such as medical care, is provided free of charge,
a. most people consume an infinite amount of it b. most people do not much care about getting good value for their money c. people do not derive any consumer surplus from it d. we say that the demand for it is perfectly elastic e. we say that the demand for it is perfectly inelastic
The equation for money demand expressed in the chapter that is derived from the equation of exchange is:Md = 
PYWe see that the equation does not explicitly address the interest rate. In fact, Professor Fisher assumed that velocity is constant which means 1/V is also a constant. Why do you think Professor Fisher left the interest rate out of the equation? Do you think he would if he were alive today? Explain.
What will be an ideal response?