In Venezuela, the government has implemented price controls on cornmeal, and the resulting shortage created a black market for the product. When compared to the competitive equilibrium, this situation has resulted in a transfer of ________ to black
market sellers.
A) only consumer surplus
B) both consumer surplus and producer surplus
C) only producer surplus
D) deadweight loss
Answer: B
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Returns to monopsony power occur because the wage rate < MRP for the last worker hired
Indicate whether the statement is true or false
Describe how the marginal utility graphs for the hamburgers and milkshakes would compare for the \ data in the table. Be sure to note whether the slope of each graph would be positive or negative, whether it would approximate a curve or a straight line, and if either graph is steeper
What will be an ideal response?
The import tariffs that President Bush placed on imported steel likely had what effect?
A. Both domestic steel consumers and foreign steel producers were helped. B. Domestic steel producers were helped, but domestic steel consumers were hurt. C. Foreign steel producers were helped, but domestic steel consumers were hurt. D. Both domestic steel producers and domestic steel consumers were helped.
If the price of a good increases, then in the market for the type of labor needed to produce this good:
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