If a price floor of $23 were placed on the market in the graph shown, which area represents the surplus that is transferred?

A. B
B. C
C. B + C + D
D. B + C

Answer: A

Economics

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Assuming the market of soda has a regular downward sloping demand curve and upward sloping supply curve, the tax will ________ the price paid by buyers and ________ the price received by sellers

A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease

Economics

Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving.

Economics