The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, what is the amount, including the subsidy, that suppliers keep per gallon?
A) $3.00 a gallon
B) between $3.00 and $4.00 per gallon
C) $4.00 a gallon
D) between $4.00 and $5.00 per gallon
D
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If all prices rise by 5 percent and money income remains constant, the new budget line will have
A) a steeper slope. B) a flatter slope. C) a positive slope. D) the same slope.
Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. The change in Darren's behavior would be shown graphically by a:
A. rightward shift in his demand curve. B. leftward shift in his demand curve. C. movement down along his demand curve. D. movement up along his demand curve.
Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?
a. $250. b. $1,250. c. $1,500. d. $15,000.
Which of the following is true of an economic model? a. It is a simplified representation of a situation that includes enough of the key features to be useful. b. It is always based on a mathematical formula
c. It is a physical representation of a real world situation in a laboratory. d. It is always named after the economist who devises it.