In the market for cotton, suppose the equilibrium price is $10 per ton and the equilibrium quantity is 100 tons. If the government then imposes a price support of $5 per ton,
A) a deadweight loss is created.
B) the market becomes more efficient.
C) consumer surplus increases.
D) producers' economic profits increase.
E) None of the above answers is correct.
E
You might also like to view...
A firm’s production process shows constant returns to scale. It can produce 5,000 widgets at a total cost of $2,500 and 10,000 widgets at an average cost of
A. $10,000. B. $5,000. C. $2,000. D. $0.50.
The degradation of the environment from litter is a
a. a negative externality. b. free rider problem. c. Tragedy of the Commons. d. Both a and c are correct.
Why might reforms to encourage saving lead to a less egalitarian society?
Refer to the accompanying table. ________ has the comparative advantage in making pizza, and ________ has the comparative advantage in delivering pizza. Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. Pat; Corey B. Pat; Pat C. Corey; Pat D. Corey; Corey