Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is producer surplus increased?
A. $3,200
B. $3,600
C. $5,400
D. $3,000
D. $3,000
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What will be an ideal response?
Economists disagree as to whether
a. the stock price of a company should reflect the company's expected profitability. b. the basic tools of finance reflect valid ideas. c. stock prices reflect rational estimates of a company's true worth. d. there is any relationship between stock market fluctuations and fluctuations in the economy more broadly.
Services can be thought of as
A) unvalued goods. B) unwanted goods. C) free goods. D) intangible goods.
If the supply of a good decreases and demand remains constant equilibrium price:
a. Will decrease, and equilibrium quantity will increase b. Will increase, and equilibrium quantity will decrease c. And quantity will decrease d. And quantity will increase