Which of the following statements best describes producer surplus in the supply and demand model?
a. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve below equilibrium.
b. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve above equilibrium.
c. Producer surplus is the area in the supply and demand model that is above the market price and the portion of the supply curve below equilibrium.
d. Producer surplus is the area in the supply and demand model that is below the market price and the portion of the supply curve below equilibrium.
a. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve below equilibrium.
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The current U.S. average tariff rate is
A) less than 5 percent. B) greater than 10 percent. C) approximately 20 percent. D) over 50 percent.
In making consumer decisions that involve many options, each decision engages the cognitive process and ________ brain fuel. Eventually, the consumer is more likely to make ________ decisions.
A. generates; thoughtful B. generates; impulsive C. consumes; thoughtful D. consumes; impulsive
The average propensity to save
A. plus the average propensity to consume equals 1. B. is negative at very high levels of income. C. varies directly with income; as income rises, the APS falls. D. minus the average propensity to consume equals 1.
Demand is given by QD = 6000 - 50P. Domestic supply is QS = 25P. Foreign producers can supply any quantity at a price of $40
a. If foreign producers can sell in the domestic market, what is the equilibrium price? What is the equilibrium quantity? How much is sold by domestic and foreign producers, respectively? b. Under domestic government pressure, foreign producers voluntarily agree to restrict their goods. What will happen to the price and quantity? What will happen to the amount that domestic producers supply? What will happen to revenues of domestic and foreign producers?