A subsidy to buyers has been placed on the market in the graph shown. What is the amount of the subsidy per unit of this good?
A. $22
B. $16
C. $10
D. $6
B. $16
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Which is the best example of idiosyncratic risk?
A) a financial crisis B) a lawsuit because the corporation produced a faulty product C) a recession D) rising interest rates
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it is an artifact of mismeasurement. This explanation would require that production of
A) goods is underestimated. B) goods is overestimated. C) services is underestimated. D) services is overestimated.
Given the scenario described, if the market price of hammers decreased from $15 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.. A. total producer surplus would fall by $4. B. producer surplus for each producer falls by $4. C. House Depot's producer surplus falls by $4. D. total producer surplus falls by $8.
Two products are complements if:
A. a decrease in the price of one causes buyers to demand less of the other. B. an increase in the price of one causes buyers to demand more of the other. C. a decrease in the price of one causes buyers to demand more of the other. D. individuals consume the goods together.