Solved

Price Is $50 and Quantity Demanded Is 2,000 Units at Point

Question 40

Multiple Choice

Price is $50 and quantity demanded is 2,000 units at point A on a linear demand curve.The linear supply curve intersects the demand curve at point B,which is at a price of $30 and 3,000 units.Which of the following is true?


A) Moving from point A to point B causes consumer surplus to rise by $50,000.
B) Moving from point A to point B causes consumer surplus to rise by $10,000.
C) Moving from point B to point A causes consumer surplus to rise by $10,000.
D) Moving from point B to point A causes consumer surplus to rise by $50,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions