Suppose the market supply for good X is given by QXS = -100 + 5PX. If the equilibrium price of X is $100 per unit then producers' revenue from X is
A. $20,000.
B. $40,000.
C. $100.
D. cannot be determined from the information contained in the question.
Answer: B
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The unemployment rate generally ________ during recessions and generally ________ during expansions
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) increases; does not change
Hank's Propane Storage Company is a profit-maximizing monopsony in the local labor market for propane handling, delivery, and other associated services. The supply and marginal cost of labor curves are shown in the figure above
Hank's demand for labor curve is the curve labeled VMP = D. At what level should a minimum wage be set in order to achieve the wage rate and quantity of employment that would be attained in a competitive labor market? A) $4 per hour B) $6 per hour C) $8 per hour D) $12 per hour
The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing rice, exporting steel, and neither importing nor exporting TVs. We can conclude that producer surplus in Aquilonia is now
a. higher in the steel market, lower in the rice market, and unchanged in the TV market. b. higher in the rice and steel markets, and unchanged in the TV market. c. lower in the rice and TV markets, and higher in the steel market. d. lower in the rice and steel markets, and the same in the TV market.
Rational behavior for an economist means that individuals
A) are motivated by self-interest. B) never change their minds. C) always value societal needs more than their own needs. D) are self-sacrificing.