A decrease in supply will always
A. increase consumer surplus.
B. increase producer surplus.
C. decrease producer surplus.
D. decrease consumer surplus.
Answer: D
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Use the following graph to answer the next question.
Suppose the economy is currently in equilibrium at the full-employment real GDP level of Q2.and price level of P2. If an event occurred in the economy that triggered demand-pull inflation, we would expect
A. the price level to move toward P3, and the output level to move toward Q3, B. the price level to move toward P3, and the output level to remain constant. C. the price level to move toward P1, and the output level to move toward Q1, D. the price level to move toward P1, and the output level to remain constant.
Explain the following statement: "People hate taxes primarily because of income effects while economists hate taxes primarily because of substitution effects."
What will be an ideal response?
Voters' Ordered PreferencesAbbyBobCarloPublic parksPublic zooPublic transportationPublic zooPublic transportationPublic parksPublic transportationPublic parksPublic zooIf a pair-wise majority vote was held and the voters' preferences are in the given table, which option would win the first round of voting?
A. Public parks B. Public transportation C. Public zoo D. It depends on which pair was considered first.