Which of the following illustrates consumer surplus?
a. Jon and Gabi find the perfect apartment, but it is $100 per month over budget.
b. When Amy shops for a new car, she finds dozens of options in her price range.
c. Beck finds an online deal for a plane ticket to Miami that is $100 under his budget.
d. Stores cannot stock enough round sunglasses after a celebrity promotes the style.
c. Beck finds an online deal for a plane ticket to Miami that is $100 under his budget.
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Price supports are a form of price ceiling for agricultural products that lowers prices for consumers and enhances market efficiency.
Answer the following statement true (T) or false (F)
Countries like the United States use ________ to offset foreign export subsidies
A) quotas B) the escape clause C) countervailing duties D) government procurement
One of the concerns of increased bank consolidation is the reduction in community banks which could result in
A) less lending to small businesses. B) loss of cultural identity. C) higher interest rates. D) more bank regulation.
Because pollution taxes raise the costs of production for firms, firms:
A. will lower prices to consumers. B. must receive a higher price at every level of output. C. will increase the quantity produced at every price. D. will quit producing goods that generate pollution.