The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium
If the government establishes a $2 per gallon price ceiling to ensure that children are nourished, estimate the change in p, Q, and social welfare.
At a price of $2, only 500 gallons are produced. The deadweight loss equals
[(1000 - 500 ) ? (4 - 2 )]/2 = $500.
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All of the following are incomes earned in the factor market EXCEPT
A) wages. B) prices of goods and services. C) rents. D) profits.
An American insurance company hires a call center in India to handle customer service calls in order to cut costs. Other things equal, this will ________ of the United States
A) decrease the financial account balance B) decrease net exports C) decrease the capital account balance D) increase the current account balance
Refer to Table 15.1. The sources of government funds for Arugula in 2012 total
A) $135 million. B) $195 million. C) $380 million. D) $600 million.
In a two-sided market, the platform may offer different prices to different group of end users due to
A. a lack of product differentiation in the products sold. B. different network effects between groups of end users. C. substitution effects between the end users and the platform. D. the budget constraints of end users.