Assume the demand curve is line AC. If price is OD, the consumer surplus is bounded by letters
A. OABD.
B. OAC.
C. DBC.
D. None of these choices are true.
C. DBC.
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When the slope of the total production curve begins to flatten:
A. the marginal product must be decreasing. B. diminishing marginal product must be occurring. C. additional inputs adds less to total production than the inputs added before. D. All of these are true.
Which of the following could be responsible for a decrease in the price of wheat?
a. an increase in the supply of wheat b. an increase in the demand for wheat c. a decrease in the demand for wheat d. Either a. or c. could decrease the rice of wheat.
An automobile manufacturer unexpectedly announces that it has hired a new chief executive officer. It is widely believed that the presence of this individual will raise the profitability of the corporation. At the same time interest rates unexpectedly rise. Which of the above would tend to make the price of the stock rise?
a. the announcement and the rise in interest rates b. the announcement but not the rise in interest rates c. the rise in interest rates, but not the announcement d. neither the announcement nor the rise in interest rates
In a market in which the government has set a price ceiling below the equilibrium price:
A. there will be excess supply. B. the quantity demanded will equal quantity supplied. C. a black market might develop. D. quantity supplied will exceed quantity demanded.