The graph shown portrays a subsidy to buyers. The subsidy causes:
A. 50 more units to be sold in this market.
B. 100 fewer units to be sold in this market.
C. 50 fewer units to be sold in this market.
D. 150 more units to be sold in this market.
Answer: A
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In equilibrium, rent seeking eliminates the
A) deadweight loss. B) economic profit. C) consumer surplus. D) demand for the product. E) opportunity to price discriminate.
A deposit outflow results in equal reductions in
A) loans and reserves. B) assets and liabilities. C) reserves and capital. D) assets and capital.
Using the information in situation 20-2, if government spending increases by $100, then the equilibrium aggregate output will change by
A) -$1,000. B) -$100. C) $100. D) $1,000.
The production possibilities curve shifts outward when
A) the law of increasing additional cost takes hold. B) the economy is producing efficiently. C) we produce more consumption goods over productive investment in equipment. D) there is an increase in resources or technology.