Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units
What is the value of economic surplus in this market?
A) $5 thousand B) $12.5 thousand C) $25 thousand D) $37.5 thousand
D
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A tax wedge:
A. refers to the difference in the price the buyer pays and the price the seller keeps. B. only occurs in markets when the tax is placed on sellers. C. only occurs in markets when the tax is placed on buyers. D. only occurs in markets when taxes are placed on large corporations.
If the U.S. government considers the value of in-kind transfers, the U.S. poverty rate decreases.
Answer the following statement true (T) or false (F)
When market failures occur
A) the invisible hand will correct for the market failures. B) the price system will correct the market failures. C) buyers and sellers will correct the market failures. D) the government can step in to correct the market failures.
Using the DD model, explain what happens to out put when Government demands increase. Use a figure to explain when it is taking place
What will be an ideal response?