Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket rises from $10 to $19
A) only three tickets will be sold. B) consumer surplus decreases from $31 to $6.
C) no one will buy a ticket. D) consumer surplus increases from $44 to $71.
B
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An assumption of neoclassical growth theory is that
A) technological change is random. B) technological change can be influenced by savings. C) more growth encourages more technological change. D) None of the above answers is correct.
The market structure of monopoly exists when
A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of differentiated products. D) there are many producers of a homogeneous product.
In a market economy, _____ own(s) all the basic resources or factors of production
a. households b. the federal government c. the Federal Reserve bank d. the local government e. business firms
Demand-side inflation differs from supply-side inflation in the following way:
a. demand-side inflation has higher output; supply-side inflation has lower output. b. demand-side inflation has lower output; supply-side inflation has higher output. c. demand-side inflation is always followed by stagflation; supply-side inflation is always followed by demand-side inflation. d. demand-side inflation has a self-correcting mechanism; supply-side inflation does not.