Suppose That a Consumer's Demand Curve for a Good Can

question 7

Multiple Choice

Suppose that a consumer's demand curve for a good can be expressed as P = 50 - 4Q^d. Suppose that the market is initially in equilibrium at a price of $10. What is the consumer surplus at the original equilibrium price?

• A) 100
• B) 150
• C) 200
• D) 250.

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Definitions:

Fiscal Programs

Government initiatives that involve expenditure and taxation decisions to influence the national economy.

2008-2009 Recession

A severe global economic downturn triggered by the financial crisis, marked by significant declines in consumer wealth, extensive layoffs, and a contraction in economic activity.

Fiscal Policies

Government policies related to taxation and spending that aim to influence the economy.

Political Business Cycle

A theory suggesting that electoral cycles influence economic cycles, with policymakers manipulating the economy to improve re-election chances.