Refer to the Graph Shown

question 186

Multiple Choice

Refer to the graph shown. If consumers had to pay $7.50 per unit for this product instead of $5.00 per unit (because of a price floor or a shift in supply) , consumer surplus would fall from:

• A)2,000 to 500.
• B)1,000 to 500.
• C)1,000 to 250.
• D)500 to 250.

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Definitions:

Practical Intelligence

Refers to the ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with new and unusual situations.

Experience

The knowledge or skill acquired through involvement in or exposure to events.

Flexibility

The capacity to adjust to novel, diverse, or evolving demands and circumstances.

Tacit Intelligence

The unspoken, practical skill set and knowledge that individuals acquire through personal experience rather than formal education.