If a city decides to lift restrictions on how many taxi cabs can operate, social welfare will increase
Indicate whether the statement is true or false
True . Even though turning producer surplus into consumer surplus doesn't increase total welfare, the elimination of the deadweight loss that resulted from the limit does.
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If two goods are perfect complements, the shapes of the indifference curves are
A) bowed toward the origin. B) bowed away from the origin. C) straight lines. D) right-angled lines.
If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam's consumer surplus is:
a. $10 b. $40. c. $70 d. $100.
If it costs $2,000 to pick up all the litter along a 100-mile stretch of highway, then the cost of the negative externality associated with the litter is
a. $0 b. more than $0, but less than $2,000 c. $2,000 d. more than $2,000 . but finite e. infinite
If producer pays entire tax, good is _________________.
Fill in the blank(s) with the appropriate word(s).