In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the deadweight loss?
A) area FHIL
B) area GHJM
C) area IJH
D) area LJK
D
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An increase in the U.S. demand for the Mexican peso
A) causes an increase in the U.S. dollar price of a Mexican peso. B) causes the Mexican peso to appreciate. C) causes the U.S. dollar to depreciate. D) causes Mexican goods to be relatively more expensive. E) All of the above.
The above figure shows the demand and cost curves facing a monopoly. The monopoly maximizes profit by setting price equal to
A) $100. B) $200. C) $300. D) $400.
Suppose you bought a concert ticket from Ticketmaster for $50, but when you get to the concert, there are a large number of people waiting outside who offer to pay you more than $50 for your ticket. What is probably true?
A. There is an excess demand for tickets at the Ticketmaster price. B. There is an excess supply of tickets at the Ticketmaster price. C. The Ticketmaster price is the equilibrium price. D. The Ticketmaster price was above the equilibrium price.
Excess demand results in a surplus.
Answer the following statement true (T) or false (F)