Assume the inverse demand function for a good can be written as: P = 30 - 2Q. Assuming P = $10, the resulting consumer surplus would be equal to:
A) $50.
B) $100.
C) $200.
D) $225.
B
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The Skinned Knee Corporation can produce either 300 skateboards each week or 500 snowboards each week. What is their opportunity cost of producing 300 skateboards each week?
A) 300 skateboards B) 200 snowboards C) 500 snowboards D) 800 snowboards
A price above equilibrium always yields a surplus
a. True b. False Indicate whether the statement is true or false
Inflation increases uncertainty in the markets because:
A. consumers must put more effort into shopping to find the best price. B. it is more difficult to stay aware of how one product compares in cost to another. C. sellers raise the prices of their products very gradually and predictably.
According to the permanent income hypothesis, which of the following should raise current consumption the most?
a) a lottery prize of $1,000 b) an unexpected year-end bonus of $1,000 c) a temporary tax cut of $1,000 d) an increase of $1,000 in annual salary e) an inheritance of $1,000