Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D + E + F.
B. A + B + C + E + F + J + I.
C. D.
D. A + B + C + D.
Answer: A
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The cross-price elasticity of demand for peanut butter and jelly is likely:
A. a positive number. B. a very high positive number. C. a negative number. D. less than one.
If Mary wants to use advertising to reduce the elasticity of demand for her dry cleaning services, she should make sure the advertising: a. clearly states the prices she charges
b. shows that she is producing a product like the other dry cleaners in town. c. shows why her services are truly different from the other dry cleaners in town. d. does none of the above.
The reduction in the U.S. government deficit in the early 1990s was the result of strong economic growth
a. True b. False Indicate whether the statement is true or false
Which two things happened more or less simultaneously to bring an end to the era of low productivity growth that lasted from 1973 to 1995?
A. The information revolution and a great expansion of globalization B. The information revolution and the creation of the Environmental Protection Agency C. The entry of the baby boom generation into the workforce and the creation of the Environmental Protection Agency D. The entry of the baby boom generation into the workforce and a great expansion of globalization