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FIGURE 5-5 -Refer to Figure 5-5.At the Market-Clearing Price and Quantity of Quantity

Question 95

Multiple Choice

  FIGURE 5-5 -Refer to Figure 5-5.At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased,the economic surplus is A) the sum of the areas below the demand curve,but above the market-clearing price of $30 - i.e.,areas 1,2,6. B) the sum of the areas below the demand curve - i.e.,areas 1,2,3,4,5,6,7,8,9. C) the sum of the areas above the supply curve,but below the market-clearing price of $30 - i.e.,areas 3,4,7. D) the sum of the areas above the supply curve and below the demand curve - i.e.,areas 1,2,3,4,6,7. E) the sum of the areas below the demand curve,up to 4000 hours - i.e.,areas 1,2,3,4,5,6,7,8. FIGURE 5-5
-Refer to Figure 5-5.At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased,the economic surplus is


A) the sum of the areas below the demand curve,but above the market-clearing price of $30 - i.e.,areas 1,2,6.
B) the sum of the areas below the demand curve - i.e.,areas 1,2,3,4,5,6,7,8,9.
C) the sum of the areas above the supply curve,but below the market-clearing price of $30 - i.e.,areas 3,4,7.
D) the sum of the areas above the supply curve and below the demand curve - i.e.,areas 1,2,3,4,6,7.
E) the sum of the areas below the demand curve,up to 4000 hours - i.e.,areas 1,2,3,4,5,6,7,8.

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