The graph shown shows a subsidy to buyers. Before the subsidy is put in place, the buyers bought _____ units and paid _____ for each of them
A. 100; $46
B. 100; $30
C. 150; $40
D. 150; $24
B. 100; $30
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If a good that generates negative externalities were priced to take these negative externalities into account, its
A. price would remain constant and output would increase. B. price would increase but its output would remain constant. C. price would increase, and its output would decrease. D. price would decrease, and its output would increase.
Nominal GDP =________ where the price level is the ________
A) Price level ÷ Real GDP; GDP deflator B) Price level × Real GDP; CPI C) Price level ÷ Real GDP; CPI D) Price level × Real GDP; GDP deflator E) none of the above
Why does the price level in a perfectly competitive market move toward the zero-profit point?
a. Because firms enter and exit the market in response to gains and losses b. Because short-run losses reverse the effects of long-run gains c. Because profitable firms increase short-run productivity d. Because firms operate below the average cost curve
Invention is the act of generating a new idea
a. True b. False Indicate whether the statement is true or false