The wholesale price of cranberries in the market is currently $0.83/lb. The quantity supplied at this price is 90,000 pounds. The quantity demanded is 95,000 pounds. In this case, there is:
a. Excess supply in the market and this is a signal for sellers to decrease price
b. Excess supply in the market and this is a signal for suppliers to increase price
c. Excess demand in the market and this is a signal for consumers to buy less
d. Excess demand in the market and this is a signal for consumers to buy more
e. The market is in equilibrium
c. Excess demand in the market and this is a signal for consumers to buy less
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If you exhibit the endowment effect as a decision maker, then you are
A) consuming based on celebrity endorsements. B) deciding on the basis of sunk costs. C) buying something you can't really afford because you expect to save in the future. D) ignoring non-monetary opportunity costs.
Which of the following is an example of an ad valorem tax?
A) 5% of price. B) 5% of quantity sold. C) $0.50 per unit sold. D) Government regulation.
If Gorgeous Sands Resort has a constant marginal cost of $15,000 for each resort unit and a constant marginal cost of $750 for operating each resort unit, what is Gorgeous Sands Resort's long-run marginal cost per resort unit?
A) $750 B) $14,250 C) $15,000 D) $15,750
A major macroeconomic leakage from the circular flow is:
a. Consumption b. Savings c. Saving d. Gross private domestic investment e. All of the above.