The figure below shows the supply and demand curves for oranges in Smallville.
When this market is in equilibrium, total economic surplus is ________ per day.
A. $320
B. $80
C. $160
D. $0
Answer: C
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Would an economist consider clean air a scarce resource? Explain
What will be an ideal response?
The MRP curve for a monopolist in the product market is
A) the same as the MRP curve for a perfectly competitive firm in the product market. B) to the left and below the MRP curve for a perfectly competitive firm in the product market. C) to the right and above the MRP curve for a perfectly competitive firm in the product market. D) upward sloping and below the MFC curve for a perfectly competitive firm in the product market.
When a tax is imposed on a good for which both demand and supply are very elastic, a. sellers effectively pay the majority of the tax
b. buyers effectively pay the majority of the tax. c. the tax burden is equally divided between buyers and sellers. d. None of the above is correct; further information would be required to determine how the burden of the tax is distributed between buyers and sellers.
When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A. physical capital. B. land. C. entrepreneurship. D. a service.