Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Total surplus is:
A. $5.
B. $60.
C. $12.50.
D. $15.
Answer: C
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If the Swiss price level fell relative to the British price level, there would be
a. a rightward movement along the supply of British pounds curve in the franc-pound market b. a leftward movement along the supply of British pounds curve in the franc-pound market c. a rightward shift of the supply of British pounds curve in the franc-pound market d. a leftward shift of the supply of British pounds curve in the franc-pound market e. no change of the supply of British pounds curve in the franc-pound market
Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time. If this student does not study at all, how much income can they earn?
a.
$0
b.
$40
c.
$80
d.
$100
e.
$120
An increase in the marginal propensity to consume (MPC) will, other things constant
What will be an ideal response?
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50If a manager adopted both project A and B simultaneously, the expected value of this joint project would be:
A. 40. B. 10. C. 20. D. 30.