If the market price rises from P0 to P2 in the above figure, then there is a
A) surplus equal to the distance Q0, Q2.
B) surplus equal to the distance Q1, Q2.
C) shortage equal to the distance Q0, Q2.
D) shortage equal to the distance Q1, Q2.
B
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Which of the following statements is true?
A) It is easier for a person to optimize when he has less information. B) Optimization implies choosing the best option from a set of alternatives. C) People always successfully optimize given the limited information they have. D) Optimization is an easy process, and all economic agents are perfect optimizers.
When the price of a good falls and the prices of other goods and a consumer's income remain the same, explain what happens to the consumption of the good whose price has fallen and to the consumption of other goods
What will be an ideal response?
Indirect taxes are levied on
a. spending b. saving c. income d. wealth e. none of the above
Price makers always have to deal with ______.
a. a segmented demand curve b. a horizontal demand curve c. an upward sloping demand curve d. a downward sloping demand curve