Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.20 per message?
A. $0.50
B. $1.00
C. $2.00
D. $2.50
D. $2.50
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Indicate whether the statement is true or false
The Commerce Bank of Beverly Hills has total deposits of $1,000,000 and total reserves of $220,000. The desired reserve ratio is 10 percent. The bank's excess reserves are
A) $22,000. B) $120,000. C) $100,000. D) $80,000. E) $1,000,000.
All else constant, as more firms substitute alternative materials, e.g., plastic, for copper, the market price of copper would be expected to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.
Following the principle of comparative advantage, specialization:
a. permits greater levels of total production than would be attained without it. b. increases the dependency of countries on trade. c. both of the above. d. neither of the above.