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Use the Following to Answer Question

question 98

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Use the following to answer question:
Figure: Market Demand Use the following to answer question: Figure: Market Demand   -(Figure: Market Demand)  Look at the figure Market Demand. The amount by which the total benefits to consumers exceed their total expenditure is called _____, and if the price is B, is depicted by the area _____. A)  producer surplus; BCD B)  consumer surplus; 0CDE C)  consumer surplus; BCD D)  net benefit; 0BDE
-(Figure: Market Demand) Look at the figure Market Demand. The amount by which the total benefits to consumers exceed their total expenditure is called _____, and if the price is B, is depicted by the area _____.


Definitions:

Marginal Cost

The increase in expense a business incurs by manufacturing one more unit of an item.

Subsidize

The act of providing financial assistance or support, typically by the government, to reduce the cost of producing goods or services.

Antitrust Laws

Legislation enacted by the government to prevent new monopolies from forming and police those that exist to protect consumers from exploitative practices.

Justice Department

A national executive department responsible for enforcing the law and administering justice, typically including courts and law enforcement entities.

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