Refer to Figure 4-5. What is the area that represents the producer surplus after the imposition of the ceiling?
A) D + F + G B) F C) F + G D) A + B + D + F + G
B
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The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________
A) increases; shifts the demand curve for golf balls rightward B) decreases; shifts the demand curve for golf balls leftward C) decreases; creates a movement up along the demand curve for golf balls D) increases; creates a movement down along the demand curve for golf balls
The law of demand states that a lower price increases the amount of a commodity that people are willing to buy.
Answer the following statement true (T) or false (F)
An incumbent firm uses limit pricing
A) to set price below a potential rival's marginal cost, thus making entry unprofitable. B) to set one price for a quantity of a good below a certain limit, and a second price for purchases above the limit. C) when it has no other advantages over a potential rival. D) if it is limited in the quantity of inputs it can purchase to produce output.
Interdependence among individuals and interdependence among nations are both based on the gains from trade
a. True b. False Indicate whether the statement is true or false