Wilma values a decorative garden rock at $15, while Fred values it at $10 . The price of a decorative garden rock is $9 . If the government imposes a $2 tax per decorative garden rock and the price of the rock rises to $11, what part of the deadweight loss comes from Wilma, and what part comes from Fred?
a. none comes from Wilma; $1 comes from Fred
b. none comes from Wilma; $3 comes from Fred
c. $2 comes from Wilma; $1 comes from Fred
d. $4 comes from Wilma; $3 comes from Fred
a
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Suppliers will be willing to supply a product only if
A) the price received is at least equal to the additional cost of producing the product. B) the price is higher than the average cost of producing the product. C) the price received is at least double the additional cost of producing the product. D) the price received is less than the additional cost of producing the product.
Securitization is the process of
A) issuing stocks to finance capital spending. B) issuing bonds to finance purchases of equipment and structures. C) reducing risk by decreasing corporate debt loads. D) converting loans into securities.
The production possibilities frontier has a:
a. curved shape. b. straight shape. c. U shape. d. frequency shape.
Figure 3-19
Refer to . Buyers who value this good more than price are represented by which line segment?
a.
AC
b.
CE
c.
BC
d.
CD