How many calls a customer service agent can handle per hour is an example of which type of constraint in the quantitative analysis of consumer and producer surplus at equilibrium?

• A. A subsidy
• B. A demand curve shift
• C. A capacity constraint
• D. A price ceiling

Answer: (C)

Verified step by step guidance

1. Understand the context of the problem: it asks about the type of constraint represented by the number of calls a customer service agent can handle per hour.
2. Recall that in microeconomics, constraints limit the ability of consumers or producers to adjust quantities or prices freely.
3. Identify that a subsidy is a financial support that lowers costs, and a demand curve shift refers to changes in consumer preferences or income, neither of which directly limit capacity.
4. Recognize that a price ceiling is a legal maximum price, which restricts prices but not quantities handled by an agent.
5. Conclude that the number of calls an agent can handle per hour is a physical or operational limit on production capacity, which is known as a capacity constraint.