Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 6,000 units?
A. $0.03
B. $25
C. $500
D. $2,500
B. $25
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Which of the following would cause the money demand curve to shift to the left?
A. An increase in interest rates B. Inflation C. A technological advance, like online shopping D. An increase in GDP
Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it.Number of workers per hourNumber of hammers per hour00120236348456560 What is the value of the marginal product of the 2nd worker hired each hour?
A. $36 B. $16 C. $32 D. $72
If aggregate quantity demanded exceeds aggregate quantity supplied, we can expect an unplanned
A. depletion of inventories, causing firms to raise prices. B. depletion of inventories, causing firms to lower prices. C. accumulation of inventories, causing firms to raise prices. D. accumulation of inventories, causing firms to lower prices.
Refer to the above table. What is the absolute price elasticity of demand if a price falls from $7 to $6.50?
A. 0.85 B. 0.92 C. 1.17 D. 1.08