In the above figure, if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then the producer surplus is equal to
A) area D + area F.
B) area C + area E.
C) area A + area B + area C.
D) area A + area B.
E) area B + area D + area F.
E
Economics
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When increased demand raises the price of the product, the
A) marginal revenue product will also increase. B) marginal revenue product will fall. C) marginal revenue product will remain unchanged. D) sales will fall.
Economics
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Economics