Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is consumer surplus reduced?
A. $14,450
B. $5,400
C. $12,000
D. $3,600
C. $12,000
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A defendant believes there is a 70 percent chance that the plaintiff will win $800,000 and a 30 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 90 percent chance that they will win $800,000 and a 10 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $300,000 and the defendant's litigation
cost is $200,000. The defendant would be willing to pay any amount up to ________ to settle. A) $760,000 B) $700,000 C) $420,000 D) $500,000
Economists call all the goods generated by a firm its total ______.
a. margin b. output c. production d. sales
The Federal Reserve surveys lending officers regularly to:
A. get a feel for the supply and demand for loans. B. determine the interest rates they charge. C. get a feel for the quantity and quality of loans. D. all of the answers given are correct.
Input demand functions that are calculated from profit functions differ from those calculated from cost functions because:
a. they assume cost-minimization. b. they hold output constant. c. they assume output price is constant. d. they assume output is set at its profit-maximizing level.