Author Question: In the market for CDs, the producer surplus will decrease if ________. A) the supply of CDs ... (Read 126 times)

erika · **on:** Jun 29, 2018

In the market for CDs, the producer surplus will decrease if ________.

A) the supply of CDs increases
B) the price of a CD decreases
C) the marginal cost of a CD decreases
D) the price of a CD increases

Question 2

The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of 500 a month. The price of a rental unit ________ and the number of units rented ________.

A) increases by 500 per month; decreases
B) increases by 100 per month; increases
C) decreases by 100 per month; decreases
D) remains the same; remains the same