Figure 3-16
Refer to . When the price is P1, producer surplus is
a.
A.
b.
C.
c.
A + B.
d.
C + D.
b
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If demand for a given good is perfectly elastic, it follows that
a. as price changes, quantity demanded does not change. b. as price changes, quantity demanded changes by a larger percentage. c. as price changes only a small percentage, quantity demanded falls to zero. d. as income changes only a small percentage, quantity demanded changes by a very large percentage. e. none of the above
The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____
a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic
An appreciation of the U.S. dollar
A futures contract is essentially the same thing as a forward contract.
a. true b. false