Use the figure below to answer the following question.
What area represents consumer surplus after the government imposes the excise tax on the market?
A. square $13ac$9
B. triangle $21a$13
C. triangle abc
D. triangle $1c$9
Answer: B
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If the price of Pepsi-Cola increases from 40 cents to 50 cents per bottle and the quantity demanded decreases from 100 bottles to 50 bottles, then according to the averaging equation, the value of price elasticity of demand for Pepsi-Cola is:
a. 0.5. b. 0.25. c. 1. d. 3. e. 2.
The MRP is the additional ___________ obtained by using one more unit of input.
Fill in the blank(s) with the appropriate word(s).
The successful commercial introduction of a new product, the use of a new method, or the creation of a new form of business enterprise is called:
A. innovation. B. invention. C. creative destruction. D. diffusion.
Consider Figure 12.3. Relative to the dominant strategy outcome, guaranteed price fixing would lead to:
A. lower prices but higher profits. B. lower prices and lower profits. C. higher prices and higher profits. D. higher prices and lower profits.