Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling?
a. a government study that shows that consuming chocolate increases the incidence of cancer.
b. a large increase in the size of the cocoa bean crop; cocoa beans are used to produce
chocolate.
c. South American cocoa bean producers refuse to ship to chocolate producers in the US.
d. a sharp drop in consumer income; chocolate is a normal good.
c
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In the figure above, the producer surplus is
A) $60,000. B) $100,000. C) $40,000. D) $80,000. E) $50,000.
We know that increases in population increase the market demand for various goods. The prices of those goods will increase the most if the elasticity of supply is
a. very large b. equal to one c. greater than 3 d. very small e. finite
Roughly what percentage of Americans were officially considered poor in 2012?
a. 2 percent b. 9 percent c. 15 percent d. 22 percent
If a country is completely self-reliant in producing goods for its own consumption needs, then
A. It achieves a higher standard of living by exporting. B. It promotes specialization. C. It consumes more than it can with trade. D. Its consumption possibilities equal its production possibilities.