A subsidy in an industry would be likely to increase the consumer surplus for buyers in that industry and increase the producer surplus for sellers in that industry
a. True
b. False
Indicate whether the statement is true or false
True
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The "law of demand" means that the demand for any scarce good
A) is completely elastic. B) cannot be completely inelastic. C) must be inelastic. D) is only a short-run demand. E) cannot be elastic.
________ uses the concept of marginal analysis to determine the optimum choice
A) Optimization in margins B) Optimization in levels C) Optimization in markets D) Optimization in differences
Since a monopoly can set any price it wants, it always makes a profit?
Indicate whether the statement is true or false
If the absolute value of the price elasticity of demand for a product is greater than 1, then
A) quantity demanded is not very sensitive to price changes. B) demand is elastic. C) demand is unit-elastic. D) demand is inelastic.