Explain with a graph, how consumer surplus changes when a monopoly price discriminates. Give a real-world example wher Explain why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistically competitiv...
Market Surplus:Trade occurs in a marketplace because the value of what is gained by each party is greater than what they have lost. The supplier would rather have money than the product they made and the consumer would rather have that product than hold onto their money. The...
Learn more about this topic: Total Revenue in Economics | Definition, Graph & Formula from Chapter 10 / Lesson 11 785K Understand what total revenue is. Learn the definition of total revenue, total revenue formula, total revenue equation, and how to calculate total revenue. Related to this...
If a consumer does not have convex preferences, then a point of tangency between her indifference curve and her budget line must be an optimal bundle. A) True B) False An individual's labor supply curve will always be upward sloping. True False Uncertain (Use a graph to e...
True or False: By discriminating between the consumers, the monopolist actually takes away a portion of the consumer surplus. If aggregate demand shifts to the right, it means an unanticipated positive demand shock and unanticipated inflation. True False Explain. ...
What happens to the total surplus in a market when the government imposes a tax? True or false? A profit-maximizing monopolist operates in the inelastic portion of the demand curve. What happens to consumer surplus if the price of a good increases? A firm increases price and its total...
Consider a consumer who has utility function u(x,y)=min(2x,3y) where x, y are amounts of goods X, Y consumed respectively. (a) If px=1,py=1, consumer has total budget w = 10. Wha...
Learn more about this topic: Economic Surplus Definition & Graph from Chapter 10 / Lesson 13 24K In this lesson, learn what surplus is in economics. Understand how economic surplus arises and understand the two types of surplus: consume...
Total SurplusTotal surplus specifies the level of total welfare that is received by the participants; these are sellers and the buyers of the good. It combines both the producer as well as the consumer surplus.Answer and Explanation: The given statement is True. ...
Using changes in the AD-AS graph explain how an increase in government expenditure changes the equilibrium in the economy? How does monetary policy affect the budget deficit or surplus? What is a government budget deficit? How does a federal budget deficit affect the economy? How ...