If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. quantity consumed will still be too low.
B. quantity consumed will still be too high.
C. total surplus will be maximized, but the outcome will be inefficient.
D. total surplus will not be maximized, but the outcome will be efficient.
A. quantity consumed will still be too low.
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The price elasticity of demand for pleasure travel (-1.9 ) and business travel (-0.8 ) suggests that air travel for pleasure is a luxury and air travel for business is a necessity
Indicate whether the statement is true or false
One of the key economic questions is "who consumes the products?"
Answer the following statement true (T) or false (F)
For perfectly price inelastic supply,
A. either supply or demand may set the price. B. price is solely determined by demand. C. only a government can set the price. D. price is solely determined by supply.
Assuming demand is linear, the shape of a monopolist's total revenue schedule is a
A. straight line with negative slope. B. curve from the origin with increasing slope. C. straight line passing through the origin. D. curve from the origin with decreasing slope.