Sammy has a drone that he values at $1,500. Dean values the same drone at $2,000. Sammy decides to sell the drone to Dean for $1,800. The government offers a subsidy of $800 to the buyers of drones. Producer surplus is ________ and consumer surplus is ________.
A) $300; $200
B) $300; $1,000
C) $1,100; $800
D) $1,100; $600
Correct Answer:
Verified
Q33: If rent-seeking behavior reduces competition in a
Q34: A market where goods are sold in
Q35: If black markets help people meet their
Q36: A payment that a person receives from
Q37: When a government subsidizes the sale of
Q39: Sammy has a drone that he values
Q40: Sammy has a drone that he values
Q41: Sammy has a drone that he values
Q42: Sammy has a drone that he values
Q43: Taxes can adversely affect free exchange.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents