Suppose that the price of a laptop computer drops from $700 to $550. Quantity demanded for laptop computers will ________ and consumer surplus will ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
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In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Output (Bushels of Barley)Marginal Cost(Dollars)10 bushels$0.3020 bushels$0.6030 bushels$0.9040 bushels$1.20 Refer to Table 5.1, which gives Farmer McColl's marginal cost function for barley. Suppose Farmer McColl is one of 20 farmers in the barley market, and all of the farmers have identical marginal cost functions. If the market price of barley is $1.00 per bushel, which of the following could be the total amount of barley produced in the market?
A. 33 B. 600 C. 340 D. 700
If the price of a bottle of orange juice in the downtown area is $0.50 per bottle and, at that price, each of the 10,000 people working in the downtown area wants to buy two bottles of orange juice per day, the quantity demanded in the downtown orange juice market would be
A. 5,000 bottles per day. B. 15,000 bottles per day. C. 20,000 bottles per day. D. 10,000 bottles per day.
A situation where illegal trading at market prices takes place is known in economics as a
A. smuggler's market. B. command market. C. black market. D. pirate market.