The Aggregate Demand for Good X Is Q = 20

question 118

Multiple Choice

The aggregate demand for good X is Q = 20 - P. If the price rises from P = $4 to P = $5, what is the change in consumer surplus?

• A) $4.50
• B) $5.50
• C) $15.50
• D) $16

---

Definitions:

Income Transfers

Payments made from one individual or group to another without an exchange of goods or services, typically aimed at reducing economic inequality, such as social security payments.

Government Income Transfers

Government income transfers are payments made by the government to individuals without any goods or services being returned in exchange, aimed at redistributing wealth and supporting those in need.

National Income

The total value of all goods and services produced by a country's economy over a specific period, accounting for income from foreign sources.

Transfer Payment

Payments made by governments to individuals or other entities without the government receiving any goods or services in return, such as welfare payments or subsidies.