Author Question: The slope in the above figure is A) negative and increasing. B) negative and decreasing. C) ... (Read 62 times)

Shelles · **on:** Jun 29, 2018

The slope in the above figure is

A) negative and increasing.
B) negative and decreasing.
C) positive and increasing.
D) positive and decreasing.

Question 2

The social surplus in a market is 50. If another economic agent enters the market such that the marginal cost he incurs is 10 and the marginal benefit he receives from the trade is 5, then which of the following statements is true?

A) The social surplus will remain the same.
B) The social surplus will increase by 5.
C) The social surplus will decrease by 5.
D) The social surplus will increase by 10.