Suppose that each of the seven dwarfs buys 4 mugs of ginger ale per week from Snow White's cafe, when the price per mug is $2 . If the seven dwarfs are the entire market demand for Snow White's ginger ale, then which of the following is the correct value for market quantity demanded of ginger ale at a price of $2?
a. 4
b. 8
c. 7
d. 28
d
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The minimum wage
A) is type of price ceiling. B) is a type of price floor. C) can create a surplus of labor. D) Both answers A and C are correct.
By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statistics isolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time
a. True b. False Indicate whether the statement is true or false
There are only two justifications for monopoly: ______________ and ______________.
A. economies of scale; natural monopolies B. economies of scale; patents C. natural monopolies; patents D. imperfect competition; being established
In this consumer surplus graph, what would happen if the price dropped again the same amount as it dropped between P1 and P2, to a new level, P3?
a. Demand would remain at point C. b. Demand would move to point B. c. Consumer surplus would decrease. d. Consumer surplus would increase.