Question

1. The maximum price that a buyer will pay for a good is called a. consumer...

1.

The maximum price that a buyer will pay for a good is called

a.

consumer surplus.

b.

willingness to pay.

c.

equilibrium.

d.

efficiency.

B.

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

a.

producer surplus increases and total surplus increases in the market for that good.

b.

producer surplus increases and total surplus decreases in the market for that good.

c.

producer surplus decreases and total surplus increases in the market for that good.

d.

producer surplus decreases and total surplus decreases in the market for that good.

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Answer #1

Ans) the correct option is b. willingness to pay.

Ans) the correct option is b) producer surplus increases and total surplus decreases in the market for that good.

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