Three individuals have $1000 and identical preferences for gum, g, and cigarettes, s, as measured by the utility function U(g,s) = 10g0.9s0.1. The price of gum is $9 and the price of cigarettes is $12. What is the market surplus/shortage at a price of $12 when the supply of cigarettes is 5?
A) There will be a shortage of 3 cigarettes.
B) There will be a surplus of 3 cigarettes.
C) There will be a shortage of 2/3 cigarettes.
D) There will be a surplus of 2/3 cigarettes.
A
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A) monetary policy is contractionary. B) monetary policy is expansionary. C) fiscal policy is expansionary. D) fiscal policy is contractionary.
In a partnership form of business
a. all, except one partner, are subject to limited liability b. the business must operate in at least two countries c. at least two different products must be produced d. the partner who owns the majority of stock makes all of the important managerial decisions e. profits are shared by the partners
For an imaginary economy, the value of the consumer price index was 138.75 in 2016, and the inflation rate was 10 percent between 2015 and 2016 . The consumer price index in 2015 was
a. 126.1. b. 128.8. c. 148.8. d. 152.6.
A person who is not working and who has looked for work in the past, but is not looking for work now is not considered "unemployed."
Answer the following statement true (T) or false (F)