Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $8 to $12, producer surplus would:
A. increase from $8 to $12.
B. increase by $4 for House Depot.
C. increase by $7 in total.
D. increase by $4 for each producer.
Answer: B
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Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.11, the bank has required reserves of
a. $600,000. b. $88,000. c. $112,000. d. $22,000.
According to researchers, there is a direct link between unemployment and:
A) characteristics of structural unemployment. B) major social problems such as high levels of education and, health services. C) inflation. D) major social problems like higher crime rates, higher rate of depression, heart disease and other illnesses.
Within the European Central Bank, banks with excess reserves:
A. can deposit them with the ECB and earn an interest rate below the target refinancing rate. B. must deposit the excess with the ECB's Deposit Facility. C. earn no interest on excess reserves, similar to the system in the U.S. D. none of the above answers is correct; there are no required reserves for the ECB and so therefore no excess reserves.
For a risk-averse individual, as wealth increases, total utility ________ and marginal utility ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases