The above figure shows the apartment rental market in Bigtown. If the market is in equilibrium and then the Bigtown Housing Authority imposes a rent ceiling of $500 per apartment, which of the following would occur?
A) a decrease in the search time and expense of finding an apartment
B) an increase in the search time and expense of finding an apartment
C) an increase in producer surplus but a decrease in consumer surplus
D) an increase in efficiency
B
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What will be an ideal response?
Suppose that in a competitive market the equilibrium price is $2.50 . What is marginal revenue for the last unit sold by the typical firm in this market?
a. less than $2.50 b. more than $2.50 c. exactly $2.50 d. The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.
Refer to the graph shown. The shift in the graph from D1 to D2 shows how an expansionary U.S. fiscal policy can cause an increase in:
A. interest rates that reduce the dollar's value. B. prices that raise the dollar's value. C. prices that reduce the dollar's value. D. interest rates that raise the dollar's value.
A monopolist increases output from 4 to 5 units. His total revenue increases from $2,750 to $3,600 . Which of the following inferences is true? a. The marginal revenue from the 4th unit is $850
b. The marginal revenue from the 5th unit is $850. c. The total cost of producing the 5th unit is $850. d. The profit earned from producing the 5th unit is $850.