When creating market demand curves for privately produced and privately consumed goods, we must
A. add the price paid at each quantity.
B. take an average of the price paid at each quantity.
C. add the quantity demanded at each price.
D. take an average of the quantity demanded at each price.
Answer: C
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The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. The average total cost (ATC) when 5 barrels of pickles are produced is
A) $22. B) $26. C) $35. D) There is not enough information to answer the question.
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price received by sellers with the tax is:
A. $2.33. B. $1.50. C. $1.75. D. $1.83.
Real GDP
a. moves in the opposite direction as unemployment. b. increases as production falls. c. falls when households save a smaller fraction of their income. d. All of the above are correct.
Because of scarcity, rationing is
A) unimportant because people get what they want. B) necessary because people cannot get everything they want. C) unimportant because prices clear markets. D) not a problem because governments can determine what everybody wants.