The following are the equations for the supply and demand curves in the market for weezils:
Demand:
Qd= 20?2P
Supply:
Qs= 5 + 3P
where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars.
Refer to Exhibit 4-1. If the government imposes a price floor of $4 a weezil, how many weezils will be sold?
A. 5
B. 10
C. 12
D. 14
Answer: C
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Stationarity means that the
A) error terms are not correlated. B) probability distribution of the time series variable does not change over time. C) time series has a unit root. D) forecasts remain within 1.96 standard deviation outside the sample period.
Assume that the elasticities of supply and demand in an industry are both equal to 2 and that it is currently untaxed. A new tax imposed on the industry will: a. be borne more by suppliers than demanders
b. be borne more by demanders than suppliers. c. be borne equally by demanders and suppliers. d. not raise any added revenue for the government since demand is relatively elastic.
Which of the following activities, if any, represents an external cost? a. The reduction in the incidence of chicken pox when children are inoculated against the disease. b. The damage to a person's health from secondhand smoke
c. The increase in local property values when the city creates a neighborhood park. d. The price you pay for the prime rib that you consume at a local restaurant.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.