Author Question: For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of ... (Read 123 times)

jake · **on:** Jun 29, 2018

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

Indicate whether the statement is true or false

Question 2

Refer to the figure above. What is the change in consumer surplus when the market changes from perfect competition to a monopoly?

A) The consumer surplus increases by 30 units.
B) The consumer surplus decreases by 45 units.
C) The consumer surplus increases by 90 units.
D) The consumer surplus decreases by 135 units.