Suppose Dan is willing to pay a maximum of $3,000 for a piano, but finds one he can buy for $2,500. Dan's consumer surplus from this piano is
A) $5,500.
B) $3,000.
C) $2,500.
D) $500.
E) zero because he buys the piano.
D
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When price is above the equilibrium level, suppliers offer more than demanders wish to buy.
Answer the following statement true (T) or false (F)
Explain what type of unemployment changes with the business cycle and how it changes
What will be an ideal response?
Dumping typically occurs because
A) the exporting country raises its prices to increase profits. B) the exporting country usually is experiencing a recession and has excess production. C) the importing country is experiencing a recession. D) the importing country has assessed significant tariffs.
The maximum legal price that can be charged in a market is:
A. the market equilibrium price. B. a price floor. C. a price ceiling. D. an ad valorem tax.