Refer to Scenario 17.4. If the flood control system were not in ...

[Alygatorr01285]

Refer to Scenario 17.4. If the flood control system were not in place, the insurer would not be willing to insure against the flood for any premium less than
 
  A) 5,000.
  B) 10,000.
  C) 100,000.
  D) 200,000.
  E) 1,000,000.

Question 2

In a supply-and-demand graph, producer surplus can be pictured as the
 
  A) vertical intercept of the supply curve.
  B) area between the demand curve and the supply curve to the left of equilibrium output.
  C) area under the supply curve to the left of equilibrium output.
  D) area under the demand curve to the left of equilibrium output.
  E) area between the equilibrium price line and the supply curve to the left of equilibrium output.

[taylorsonier]

Answer to Question 1

B

Answer to Question 2

E