Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market:
A. would increase because consumers would be able to purchase more cheese at a lower price.
B. would increase because consumers would be able to purchase the same quantity of cheese at a lower price.
C. would decrease because of the reduction in equilibrium price.
D. could either increase or decrease.
Answer: D
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The main disadvantage to organizing a business as a proprietorship is
A) its complex management structure. B) limited liability. C) unlimited liability. D) that economic profit cannot be maximized.
Economists and accountants use the same definition of profit
a. True b. False Indicate whether the statement is true or false
In a loan, the lender lends the borrower ________, for which the borrower pays the lender ________.
A. the default; the principal B. interest; the term C. the term; the default D. the principal; interest
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Megan has two products available, pizza and hamburgers. Megan is always willing to trade an equal number of pizzas for hamburgers regardless of how many pizzas and hamburgers she has. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D