A tax
A) places a wedge between the price paid by the buyers and the price received by the sellers.
B) reduces consumer surplus and producer surplus.
C) decreases government spending.
D) Both answers A and B are correct.
E) None of the above answers is correct.
D
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Which one of the following factors increases the likelihood that a cartel agreement will lead to higher profit for cartel members?
a. free entry into the cartelized market b. a small number of sellers involved in the cartel agreement c. the cartel members produce a differentiated product d. highly unstable demand for the product produced by the cartel
Suppose the demand and supply curves for good X are both linear. The demand price for the first unit of X is $28, and the supply price for the first unit of X is $6. If the equilibrium price for good X is $16 and the equilibrium quantity of X is 24,000 units, then total consumer surplus is ________, total producer surplus is ________, and total social surplus is ________.
A. $144,000; $672,000; $384,000 B. $144,000; $120,000; $264,000 C. $672,000; $144,000; $384,000 D. $28; $6; $16 E. $120,000; $144,000; $264,000
Consider Figure 12.3. Choosing a low price is:
A. a dominant strategy for David but not for Becky. B. a dominant strategy for Becky but not for David. C. a dominant strategy for both David and Becky. D. not a dominant strategy for either David or Becky.
A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that
A) students are more concerned about good grades than good health. B) society should value sleep more highly than good grades. C) there is a trade-off between studying and sleep. D) society should value good grades more highly than sleep because students can catch up on their sleep once final exams are over.