Consider a market characterized by the following inverse demand and supply functions: PX = 50 - 4QX and PX = 10 + 2QX. Compute the surplus producers receive when a $30 per unit price floor is imposed on the market.
A. $75.
B. $35.
C. $25.
D. $50.
Answer: A
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Any change that causes an increase in the demand for labor at a given wage rate will be represented by a(n) ________, assuming all else equal
A) rightward shift of the labor demand curve B) leftward shift in the labor demand curve C) downward movement along the labor demand curve D) upward movement along the labor demand curve
An increase in the corporate profits tax is likely to cause
A) the equilibrium interest rate to rise and the equilibrium price of bonds to fall. B) the equilibrium interest rate to fall and the equilibrium price of bonds to rise. C) the equilibrium interest rate and the equilibrium price of bonds both rise. D) the equilibrium interest rate and the equilibrium price of bonds both fall.
What is the cost of production at the number of units where the company is indifferent between the two technologies?
a. $750 b. $850 c. $950 d. $1050
Round-trip airline tickets are usually cheaper if you stay over a Saturday night before you fly back. What is the reason for this price discrepancy?
a. Airlines are practicing imperfect price discrimination to raise their profits. b. Airlines charge a different rate based on the different nature of peoples' travel needs. c. Airlines are attempting to charge people based on their willingness to pay. d. All of the above are correct.