If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:
A) is above the market equilibrium price.
B) will rise to clear the market.
C) will either rise or remain unchanged.
D) is below the market equilibrium price.
Answer: A) is above the market equilibrium price.
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Answer the following statement(s) true (T) or false (F)
1. A volume-based effluent fee is based on the degree of harm linked to the contaminant released. 2. Polluting sources have an incentive to abate up to the point where their Marginal Abatement Cost (MAC) equals the Marginal Effluent Fee (MEF), and to pay the fee beyond that point. 3. When polluting sources with different Marginal Abatement Costs (MACs) are faced with a Marginal Effluent Fee (MEF), eachabates at a different level, which means that the effluent fee does not achieve a cost-effective solution. 4. A fertilizer tax is an example of an effluent fee. 5. Tradeable effluent permit markets can lead to cost savings as long as polluting sources face different marginal abatement costs to control the same pollutant.
An increase in the wages paid to high-school student who detassle corn will increase the labor supply of high-school students who weed soybean fields, all else equal
a. True b. False Indicate whether the statement is true or false
The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than
a. $5 per hour. b. $9.38 per hour. c. $10 per hour. d. $300 per hour.
To reduce labor surplus above the equilibrium union wage level, a union may do all of the following EXCEPT
A) lengthen apprenticeship period. B) assign jobs based on seniority. C) limit the number of new members accepted. D) encourage nonunion members to join the union.