Suppose that the competitive market for rice in Japan was suddenly monopolized. The effect of such a change would be:
A. to decrease the price of rice to the Japanese people.
B. to decrease the consumer surplus of Japanese rice consumers.
C. to decrease the producer surplus of Japanese rice producers.
D. a welfare gain for the Japanese people.
Answer:B
Suppose that the competitive market for rice in Japan was suddenly monopolized. The effect of such a change would be:
A. to decrease the price of rice to the Japanese people. B. to decrease the consumer surplus of Japanese rice consumers. C. to decrease the producer surplus of Japanese rice producers. D. a welfare gain for the Japanese people.