The graph shows the market for rental housing in Little Rock. The market for apartments is efficient when
A) the quantity of apartments demanded is 12,000 a month.
B) the rent ceiling is set at $300 a month.
C) there is no rent ceiling.
D) the quantity of apartments supplied is 6,000 a month.
E) the rent charged is less than $450.
C
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The above figure shows the U.S. market for wheat. When there is no international trade, consumer surplus is equal to ________
A) area A + area B + area C B) area A C) area E + area F D) area B + area C + area D E) area A + area B + area C + area D
Fiscal policy
a. is dangerous in the short run because it crowds out investment spending b. can change equilibrium GDP in the short run c. can change equilibrium GDP in the long run d. can change equilibrium GDP in both the long and the short run e. is dangerous in the long run because it triggers a multiplier effect
Along the portion of the consumption function that lies above the 45-degree line, saving is
A) positive. B) negative. C) equal to zero. D) equal to consumption.
Assume the market was in equilibrium in the graph shown. If the market price gets set to $14, which of the following is true?
A. Some consumers gain surplus, but total surplus falls.
B. Some producers gain surplus, but total surplus falls.
C. Some producers lose surplus, but total surplus rises.
D. Some consumers lose surplus, but total surplus rises.