Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of consumer surplus?
A) $300 thousand B) $450 thousand C) $900 thousand D) $1,500 thousand
B
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An independent relationship between two variables is shown in a graph by
A) an upward-sloping line. B) a horizontal or a vertical line. C) a downward-sloping line. D) a steeply sloped line. E) any straight line curve.
Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right. B) AD curve shifting permanently to the right. C) AS curve shifting temporarily to the left. D) AS curve shifting permanently to the left.
When negative externalities are present, the firm's internal costs always
a. exceed the firm's external costs b. are less than the firm's external costs c. equal the firm's external costs d. understate the actual cost of using society's resources producing the good e. overstate the actual cost of using society's resources producing the good
Public goods are
A. nondepleteable and nonexcludable. B. depleteable and excludable. C. nondepleteable but excludable. D. depleteable but nonexcludable.