Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that sellers receive is
A. P0.
B. P2.
C. P5.
D. P8.
Ans: D. P8.
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200If the world price of the product is $6 and a tariff of $1 per unit imported is imposed, then the quantity of output that would be supplied domestically would be ________ units and the quantity of output that would be imported would be ________ units.
A. 1,600; 400 B. 1,400; 800 C. 1,400; 400 D. 1,600; 800
When the price of pizzle trees increased by 20 percent last year, consumers ended up spending 10 percent more on the purchase of pizzle trees. This shows that the demand for pizzle trees
A) was elastic. B) was inelastic. C) was unit elastic. D) did not obey the law of demand.
When there is a divergence between social costs and private costs in a market, _____
a. the market will always provide an efficient allocation of resources b. there will be too much or too little production and consumption in the market c. there will be an acute shortage of goods and services in the market d. there will be an excess supply of goods and services in the market e. all resources are being used in their highest-valued activity
Tranching makes it so that packages of reliable, low-risk mortgages could be sold to ________, while higher-risk subprime mortgages could be sold to ________.
A. more risk-loving investors; risk-averse investors B. more risk-averse investors; risk-loving investors C. national banks; local banks D. local banks; the government