Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price paid by buyers with the tax is:
A. $2.00.
C. $2.50.
D. $2.25.
B. $2.33.
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When a country's imports are larger than its exports, the country is running a trade deficit
Indicate whether the statement is true or false
We may not be able to fully remove risk by diversification if:
A) a completely risk-free asset does not exist. B) the asset returns in our portfolio are positively correlated. C) buying stock on margin is not allowed by financial regulators. D) none of the above
Almost all of the rent that tenants pay to landlords of apartments buildings is economic rent.
Answer the following statement true (T) or false (F)
Exhibit 4-11 Data on supply and demand Bushels demandedper month Price perbushel Bushels suppliedper month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A. Buyers would want to purchase more wheat than is supplied. B. Buyers would not purchase all of the wheat grown. C. Shortage of wheat would increase the price of wheat. D. Farmers would grow less wheat.