If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the academic year, the marginal dollar cost to you of parking your car on campus on any given weekday will be
A) $35.
B) $1.
C) $.20.
D) zero.
E) negative.
D
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Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. In the new general equilibrium:
A. consumers purchase more milk and more cereal. B. consumers purchase less milk and less cereal. C. consumers purchase more milk and less cereal. D. consumers purchase less milk and more cereal.
When state and local governments provide public schools with a per-unit subsidy to provide educational services, the price that the schools providing these services receive is
A) less than the price that consumers pay to receive educational services. B) less than the amount of the per-unit subsidy that the schools receive. C) greater than the market clearing price without the subsidy. D) equal to zero.
The difference between the lowest price for which a supplier is willing to provide a good or service and the revenues a supplier actually receives for selling it is called ______.
a. value balance b. equilibrium price c. supply curve d. producer surplus
What two factors are necessary for demand?
a. desire for a good or service and its availability in the market b. desire for a good or service and the ability to pay for it c. the availability of a good or service and the ability to pay for it d. familiarity with a good or service and the desire to pay for it