In Figure 3-3 above, equilibrium income is
A) 400.
B) 640.
C) 666.67.
D) 1,000.
E) 2,400.
D
You might also like to view...
Refer to Figure 3-1. An increase in the price of a complement would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Refer to Table 3-4. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. If the price of cashews falls from $4 to $2, the market quantity demanded would
A) increase by 36 lbs. B) decrease by 28 lbs. C) increase by 28 lbs. D) decrease by 36 lbs.
In the short run, the incidence of a sales tax is
a. wholly absorbed by the producer. b. shared between the consumer and the producer. c. deferred until the market is able to re-establish an equilibrium price. d. wholly absorbed by the consumer.
U.S. public policy discourages saving because
a. other things the same, taxes increase the return from savings. b. means tested programs such as Medicaid provide lower benefits to those who did not save. c. none of parents' bequest to their children is taxed. d. some forms of capital income are taxed twice.