Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is PX = 20 ? QX; Consumer 2's (inverse) demand is PX = 20 ? 2QX; and Consumer 3's (inverse) demand is PX = 20 ? 4QX. When PX = $10, the market will demand:
A. 17.5 units and the inverse market demand curve is PX = 20 ? 0.5714QX.
B. 17.5 units and the inverse market demand curve is PX = 60 ? 7QX.
C. ?30 units and the inverse market demand curve is PX = 60 ? 7QX.
D. None of the statements is correct.
Answer: A
You might also like to view...
If inflation increases unexpectedly, then
A) lenders receive a lower real interest rate than they expected. B) neither borrowers nor lenders lose. C) borrowers pay a higher real interest rate than they expected. D) lenders gain and borrowers gain.
For an individual's supply curve of labor to be upward sloping:
a. the substitution effect must be greater than the income effect. b. the substitution effect must be equal to the income effect. c. the substitution effect must be less than the income effect. d. is an impossibility.
Other things equal, a price ceiling will increase consumer surplus by allowing customers to buy more at the lower price
a. True b. False Indicate whether the statement is true or false
How extensively does the United States use quotas?
A. Very little; there are few quotas on imports. B. Selectively; there are more quotas than most people realize. C. Widely; quotas are extensive and cover a wide range of goods. D. Widely; although the United States prefers to use tariffs, which cover a wide range of goods.