Suppose that an expected increase in ethanol demand increases the intercept of the demand curve in the previous question(question 57)by $1.00. If corn production stays at 12 billion bushels, the price of corn will be
A. $3.00
B. $4.00
C. $5.00
D. $6.00
Ans: B. $4.00
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The above figure shows the U.S. market for replacement cell phone batteries. Area B + area D is the
A) tariff revenue. B) decrease in consumer surplus due to the tariff. C) deadweight loss from tariff. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
Today's Federal Reserve bank notes promise to pay the bearer
A) nothing. B) a fixed quantity of gold. C) a variable quantity of gold. D) a specific interest rate. E) a variable interest rate.
When economists talk about a demand schedule for a product, they mean
A) the amount of a good that consumers intend to purchase at each price in a set of possible prices in a given time period. B) the amount of a good that consumers are able to purchase (though they might not be willing to) at different prices in a given period of time. C) the amount of a good that consumers intend to purchase at only one particular price in a given period of time. D) the amount of a good that producers are willing to make available for sale at a particular price in a given time period.
The 2005 Boston Globe article discussing ticket scalping points out that the price people will pay for tickets will rise when
a. supply and demand are both limited. b. supply is limited and demand is not limited. c. supply is limited and demand is not limited. d. supply and demand are both not limited.