The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the aggregate surplus at the competitive market equilibrium?
A. $4.5 million
B. $9 million
C. $13.5 million
D. $27 million
C. $13.5 million
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Fiscal policy cannot help an economy produce at an output level above potential GDP without causing __________.
a. inflation b. deflation c. unemployment d. taxation
Which of the following is true of the law of diminishing marginal utility?
a. The additional utility that a person receives from consuming the first unit of a good will be more than the additional utility received from consuming the fifth unit of that same good. b. The additional utility that a person receives from consuming the first unit of a good will be less than the additional utility received from consuming the fifth unit of that same good. c. The additional utility that a person receives after consuming the first unit of a good will be equal to zero. d. The additional utility that a person receives from consuming the first unit of a good will be equal to the additional utility received from consuming the fifth unit of that same good.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Today, ________ of shoes sold in the United States are made overseas?
A) almost 75 percent B) 99 percent C) just over half D) about 25 percent