Refer to above figures. Prior to the shift of the curves, which panel and which curve involve the existence of negative externality?
A) Panel 1 and S1
B) Panel 1 and S2
C) Panel 2 and D1
D) Panel 2 and D2
A
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Consider a consumer with a choice set that emerges from an exogenous income I. Suppose that, as a result of changes in a consumer's economic circumstances, the budget line rotates outward, with the vertical intercept remaining unchanged but the horizontal intercept shifting to the right. Demonstrate, using the budget line equation, how this could have happened if the price of the good on the horizontal axis did not change?
What will be an ideal response?
If country A is importing good x from country B where x is produced along a perfectly inelastic supply curve, then country B will suffer the entire deadweight loss from any tariff imposed on imports to country A.
Answer the following statement true (T) or false (F)
Examining the conditions that could lead to inflation in an economy is an example of a microeconomics topic
Indicate whether the statement is true or false
What is a network externality?
A) It refers to a product that requires connection to a network for it to be useful. B) It refers to a situation in which a product's usefulness increases with the number of people using it. C) It refers to having a network of suppliers and buyers for a good or service. D) It refers to lobbying to form a public enterprise.