Lydia enjoys going to the theater to see Broadway musicals. The following demand schedule shows Lydia's willingness to pay for theater tickets in a year. Ticket Price Number of Tickets $90 1 $80 2 $70 3 $60 4 $50 5 $40 6 If the price of tickets to Broadway musicals equals $50, Lydia's consumer surplus will be:
a. $350.
b. $300.
c. $250.
d. $100.
d
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With price on the vertical axis and quantity on the horizontal axis, economists would draw an increase in supply as
A) a leftward shift in the supply curve. B) a rightward shift in the supply curve. C) a vertical supply curve. D) any which way we like.
A 95% confidence interval
A) indicates that there is 95% confidence that the value of the estimated coefficient is correct. B) indicates that there is 95% confidence that the degrees of freedom explain the data correctly. C) is a range of of values that gives a 95% probability that the true value of the coefficient is within the specified interval. D) is the probability that we have obtained the true value of the coefficient with 95% accuracy.
If a firm's average total cost is less than price where MR = MC
A) the firm should shut down.
B) the firm should cut back on its output to lower its cost.
C) the firm should continue to produce the output it is producing.
D) the firm should raise its price.
Which of the following would qualify as an aggregate supply shock?
A. An unexpected reduction in consumer confidence B. An anticipated tax cut C. A seasonally expected increase in oil prices D. An unexpected increase in oil prices