The maximum price that a buyer will pay for a good is called
a. consumer surplus.
b. willingness to pay.
c. equilibrium.
d. efficiency.
b
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Refer to Scenario 16.2. What is Sally's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 7/2. B) 2 C) 1/2. D) It is impossible to determine without the prices of each commodity.
If a country has a comparative advantage in tea moved from autarky to free trade, this would cause what reaction in the world market?
A. Domestic tea producers would be opposed. B. Foreign tea producers would be opposed. C. Foreign tea consumers would be opposed. D. Foreign producers would be in favor of.
The current price of concert t-shirts is $20 each, and the company has been selling 400 per week. If price elasticity is 2.5 and the price changes to $21, how many t-shirts will be sold per week?
Which of the following is a major area of study for economists?
a. How countries choose national leaders b. The design of recycling water c. The best way to design a nature reserve d. How people make decisions