Figure 9-14

question 83

Multiple Choice

Figure 9-14.On the diagram below,Q represents the quantity of crude oil and P represents the price of crude oil.
-Refer to Figure 9-14.When the country for which the figure is drawn allows international trade in crude oil,

• A)consumer surplus changes from the area A + B + D to the area A.
• B)producer surplus changes from the area C to the area B + C + D.
• C)total surplus decreases by the area D.
• D)All of the above are correct.

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Definitions:

Interest Rate

The part of a loan that incurs interest charges for the borrower, usually shown as an annual percent of the outstanding loan.

Investment

Allocating resources, such as capital or time, with the expectation of generating an income or profit.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the income earned from deposited funds.

Interest Rate

The proportion, in percentage, charged on the total amount borrowed or earned on the deposited amount over a specific time period.