Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?
A) The equilibrium point will move from A to E.
B) The equilibrium point will move from A to B.
C) There will be no change in the equilibrium point.
D) The equilibrium point will move from A to C.
C
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Mergers are closely scrutinized by the government because
A) they might allow the firms involved to dominate the market and act as a legalized cartel (monopoly). B) they always result in a more efficient market. C) they always result in lower joint profits of the firms involved. D) all mergers are undesirable.
Suppose that today, consumers expect the price of a gallon of gasoline to double in the future. Then today the gasoline
A) demand curve will shift to the right. B) demand curve will shift to the left. C) supply curve will shift to the right. D) supply curve will shift to the left.
In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made
a. True b. False Indicate whether the statement is true or false
A producer surplus is a ______.
a. net loss b. net benefit c. form of taxation d. form of subsidy