Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply:Qs = -200 + 50PIf the price is currently $11, there is a
A. shortage of 240 units.
B. surplus of 350 units.
C. shortage of 700 units.
D. surplus of 110 units.
Answer: D
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Which characteristic of a pure public good is linked to poorly-defined property rights? Explain your answer
What will be an ideal response?
Refer to Figure 9.9. At free trade, domestic producer surplus would be
A) $2,500. B) $50,000. C) $1,250,000. D) $2,500,000. E) $20,000,000.
Increased trade restrictions
A. Reduce total consumption possibilities. B. Alter a nation's production possibilities. C. Have a neutral impact since the losses cancel out the benefits. D. Increase a trade deficit in the short run.
Advocates of an unregulated market system argue that
A. competition promotes efficiency. B. competition leads to product variety and quality. C. competition leads to innovation. D. all of the above.