Lou buys a Star Wars: The Force Awakens poster from Evan for $30 and resells it on eBay for $60. Which of the following statements is false?
A) Lou has probably incurred some costs in connection with this sale.
B) It is possible that Evan has earned some producer surplus from this transaction.
C) Lou has earned some arbitrage profits, assuming that transactions costs are negligible.
D) The transaction has made Evan worse off because he undersold the poster.
D
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The lowest wage for which a person is willing to supply labor is known as the
A) substitution wage. B) income effect. C) derived wage. D) reservation wage.
Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus?
A) $1.50 B) $2.25 C) $3.00 D) $4.75
Refer to Figure 13-17. What is the productively efficient output for the firm represented in the diagram?
A) Qf units B) Qg units C) Qh units D) Qj units
Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
a. 0. b. 1. c. 6. d. 36.