The figure below shows the market for shoes in a small importing country. Dd and Sd are the domestic demand and supply curves of shoes, respectively.
Following the imposition of a tariff, the domestic producer surplus ________ by the area
A. increases; (S1 - S0).
B. increases; (a + b).
C. increases; a.
D. decreases; a.
Answer: C
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People who failed to look for a job are classified as
A. unemployed. B. underemployed. C. out of the labor force. D. part time employed.
Global capital flows have completely broken the link between domestic savings and domestic investment
Indicate whether the statement is true or false
Exhibit 5-6 Demand curve for concert tickets
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In Exhibit 5-6, if promoters lower their ticket price from $30 to $20, then:
A. ticket sales will increase but total revenue will decrease because demand is inelastic between $30 and $20. B. both ticket sales and total revenue will increase because demand is inelastic between $30 and $20. C. ticket sales will decrease but total revenue will increase because demand is elastic between $30 and $20. D. both ticket sales and total revenue will increase because demand is elastic between $30 and $20.
"Price discrimination is the same as price differentiation." Do you agree or disagree? Why?
What will be an ideal response?