What would happen if you decreased the price to $2 and decreased the quantity supplied to 4,000 pounds?
a. You would create a shortage.
b. You would maintain the same surplus.
c. You would reach equilibrium.
d. You would reduce the surplus.
a. You would create a shortage.
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The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the tax revenue is
A) $2 ? Q1. B) $2 ? Q2. C) $2 ? (Q2 - Q1). D) $2.
Macroeconomics focuses on the economy as a whole
a. True b. False
Production inefficiency is most likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
A graph that maps output against the input required to make that output is called a/an
A. marginal cost function. B. cost function. C. average cost function. D. production function.