Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9
A) too many consumers want to buy pecans.
B) economic surplus is maximized.
C) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.
D) the quantity supplied is greater than the economically efficient quantity.
D
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A scooter uses much less gasoline than does a car. Suppose the price of gasoline rises substantially. Which of the figures above best illustrates how this change affects the demand curve for scooters?
A) Figure A only B) Figure B only C) Figure C only D) Figure D only E) Both Figure A and Figure D
If the production technology has increasing returns to scale, short run marginal cost curves must be downward sloping.
Answer the following statement true (T) or false (F)
Which of the following is a transfer payment?
a. The federal government's budget deficit b. Unemployment compensation payments c. Military spending d. Wages of government employees e. The excise tax on gasoline
In the long run, the currency of a country that has a higher inflation rate will appreciate against the currency of a country whose inflation rate is lower
a. True b. False