Consider the relationship between a kinked demand curve and the corresponding marginal revenue curve. Below the point where the kinked demand curve has its characteristic kink, the marginal revenue curve is
a. positively sloped
b. a horizontal line
c. a vertical line
d. discontinuous
e. nonexistent because of the kink
D
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If the price of potato chips increases, other things constant, demand for potato-chip dip will:
a. not change; only quantity demanded will change. b. increase, because the goods are substitutes. c. decrease, because the goods are substitutes. d. decrease, because the goods are complements. e. increase, because the goods are complements.
The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market
A) above; above B) above; below C) below; above D) below; below
Refer to Figure 7-3. What is the value of domestic producer surplus after the imposition of a quota?
A) $10.75 million B) $15.75 million C) $17.25 million D) $27.75 million
In the United States, the average level of educational attainment is approximately a
a. primary education. b. secondary education. c. higher education. d. graduate-level education.