Author Question: Which of the following is true about consumer surplus? a. Consumer surplus is how much more ... (Read 70 times)

nelaaney · **on:** Jun 30, 2018

Which of the following is true about consumer surplus?
a. Consumer surplus is how much more consumers have to pay than they are willing to pay.
b. Consumer surplus is shown graphically as the area under the demand curve but above the supply curve.
c. An increase in the market price due to a decrease in supply will increase consumer surplus.
d. A decrease in market price due to an increase in supply will increase consumer surplus.

Question 2

According to Milton Friedman, the short-run trade-off between unemployment and inflation comes from unanticipated inflation.
a. True
b. False
Indicate whether the statement is true or false