An increase in the price of jet fuel will ________ airline travel and the equilibrium quantity of airline travel will ________
A) decrease the supply of; decrease
B) increase the demand for; increase
C) decrease the supply of; increase
D) decrease the demand for; decrease
A
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
With a Pt?Pc per-unit tariff, the quantities sold by foreign and domestic producers respectively will be
A. y?w and w. B. z?x and x. C. x?v and x. D. z?w and x.
A good is considered nonrival-in-consumption if
a. many individuals can share in the consumption of the same unit of the good. b. the consumption of the good by one individual lowers the amount available for others. c. even nonpaying customers can receive the full benefit from the good. d. its production is financed through tax revenue rather than market prices.
Which of the following is an example of a public good?
A. Social Security payments. B. Flood control. C. Carpooling with your friends. D. None of the choices are correct.
Suppose you operate a factory that produces gadgets. Your current output is 1,000 gadgets. If your fixed cost is $10,000 and your total cost is $50,000, the:
A. average total cost of production is $500. B. average variable cost of production is $50. C. average variable cost of production is $40. D. marginal cost of production is $40,000.