Assuming that clothing is a normal good, an increase in consumer income, other things being equal, would:
a. increase the demand for clothing.
b. decrease the demand for clothing.
c. increase the quantity of clothing demanded.
d. decrease the quantity of clothing demanded
a
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The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000 B) $400,000 C) $200,000 D) $100,000 E) $1,800,000
A firm's total revenue
a. can be read off the demand curve it faces, but only if we know total cost of production b. can be read off the demand curve it faces, but only if we know how must output the firm sells c. is found by multiplying price per unit by the number of units produced and sold d. is equal to profit when inputs are fixed in the short run e. will be positive at any level of output
It would always be a mistake to view
a. many species of animals as common resources. b. a road as a public good. c. national defense as a common resource. d. a fireworks display as a public good.
Table 5.1Refer to Table 5.1. A change in the price of hamburgers caused the change in quantity demanded shown in the table. The price elasticity of demand for hamburgers (calculated using the initial value formula) is:
A. 0.25. B. 0.50. C. 1. D. 1.75.