The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The imposition of a tariff on computers caused the surplus of the domestic producers to ________ by
A. rise; $44 million.
B. fall; $48 million.
C. rise; $20 million.
D. rise; $800,000.
Answer: A
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Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output decreases from 1 million to 1/2 million pounds. How can we explain the increase in price and decrease in market output?
A) Supply decreased and demand remained unchanged. B) Supply increased and demand remained unchanged. C) Demand increased and supply remained unchanged. D) Demand decreased and supply remained unchanged.
A firm that engages in price discrimination must be able to identify the preferences of every
customer it serves. Indicate whether the statement is true or false
The above figure shows the payoff matrix facing an incumbent firm. Assuming a fixed cost of entry, will the incumbent deter entry? Why?
What will be an ideal response?
The way income is allocated among the population is called the
A) income curve. B) income spread. C) distribution of income. D) Gini allocation.