The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
A
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In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. Bidders do not know the estimates of the others d. The true value of the item differs across bidders
Suppose that Mark and Kate are the only consumers of pizzas in a small town. Mark purchases 6 pizzas a week if the price is $12.00 per pizza, but only 3 pizzas per week if the price is $16.00 . Kate, on the other hand, purchases 3 pizzas per week at $12.00 per pizza, but only 2 per week if the price is $17.00 each. The market demand for pizza at a price of $12.00 is equal to _____
a. 5 b. 7 c. 14 d. 9
You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A. the wage for teachers in that district is lower than the equilibrium wage. B. the demand for teachers in the inner-city school district is too low. C. there is an excess supply of teachers in other districts. D. the wage for teachers in that district is higher than the wage in other districts.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower