Figure 6-9
In 1983, government price supports raised the price of sugar above its equilibrium value. Which graph in Figure 6-9 illustrates the impact of sugar price supports on the sugar substitute fructose?
A. 1
B. 2
C. 3
D. 4
Answer: C
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If a firm accumulates unwanted inventories, then it
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What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If the transaction is completed at $510,000 . the transaction will generate:
a. No surplus b. $25,00 . worth of seller surplus and unknown amount of buyer surplus c. $15,00 . worth of buyer surplus and $25,00 . of seller surplus d. $25,00 . worth of buyer surplus and unknown amount of seller surplus
We assume an upward sloping supply curve because:
A. the income effect tends to dominate labor-supply decisions in the real world. B. it makes better theoretical sense that the price effect would dominate. C. it makes better theoretical sense that the income effect would dominate. D. the price effect tends to dominate labor-supply decisions in the real world.