| Question | According to Hong and Wolak (2008), a 5% postal price increase, such as the one in 2006, reduces postal revenue by $215 million and lowers consumer surplus by $333 million. Illustrate these results in a figure similar to that of Figure 5.2, and indicate the dollar amounts of areas A and B in the figure. Figure 5.2: A Change in Consumer Surplus |
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| Subject | business-economics |
