The above figure illustrates the marginal social benefit and marginal social cost for chicken sandwiches. If the quantity is decreased from 6 to 3 and the price increases from $3 to $4, consumer surplus will decrease by
A) $1.50.
B) $2.00.
C) $3.00.
D) $4.50.
D
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The price that a firm's only competitor charges would be a
a. topic in microeconomics b. topic in finance c. macroeconomic topic d. topic in public finance e. normative issue
The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of _____
a. opportunity cost b. sunk cost c. diseconomies of scale d. constant returns to scale
Something that induces a person to act is called
a. a trade-off. b. a policy. c. an incentive. d. an opportunity cost.
The U.S. Postal Service printed 150,000 sheets of a stamp depicting Bill Pickett, but recalled them when the USPS realized the image on the stamp was Bill's brother, Ben, instead. They were unable to recall 183 sheets that had already been sold. The effect of this recall was to:
A. drastically reduce the supply of the Bill Pickett stamps, causing their equilibrium price to fall. B. have no effect on either supply of or demand for the Bill Pickett stamps because there is no market for them. C. drastically reduce the supply of the Bill Pickett stamps, causing their equilibrium price to rise. D. drastically reduce the demand for the stamps, causing their equilibrium price to fall.