If the world supply of diamonds decreases, diamonds become more valuable, and therefore, the consumer surplus derived from diamonds increases
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country B will, after the emigration of labor:
A. Increase by area qrs
B. Increase by area qtus
C. Decrease by area qrs
D. Decrease by area qtus
What factors determine the magnitude of the price elasticity of demand?
What will be an ideal response?
In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economies of scale are exhausted. C) Economic surplus is maximized. D) Firms earn economic profit.
A line is parallel to the horizontal axis. The slope of the line is
A) infinite. B) indicative of an inverse relationship between two variables. C) indicative of a direct relationship between two variables. D) zero. E) b and d