Suppose you observe a decrease in the equilibrium price and quantity of corn. Of the options listed below, this is best explained by:
A. a decrease in the cost of growing corn.
B. an increase in the cost of growing corn.
C. a fall in consumer income assuming corn is a normal good.
D. a rise in consumer income assuming corn is a normal good.
Answer: C
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In the long run, a leftward shift of the aggregate demand curve will lead to a(n):
a. increase in equilibrium output but will not change the price level in an economy. b. increase in the price level as well as the equilibrium output in an economy. c. decrease in the price level but will leave the equilibrium output unchanged in an economy. d. increase in the price level but will leave the equilibrium output unchanged in an economy. e. decrease in the price level as well as the equilibrium output in an economy.
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then what will be the bookstore's total economic profit?
A. $154 B. $150 C. $130 D. $158
A positive externality occurs whenever:
a. an increase in the output of one firm lowers costs for other firms. b. a decrease in the output of one firm lowers costs for other firms. c. an increase in costs of one firm lowers costs for other firms. d. a decrease in one firm's hiring of labor lowers labor costs for other firms.
Explain how government intervention can improve economic efficiency in public good market
Please provide the best answer for the statement.