Suppose the supply of land is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium. If the supply curve shifts rightward (e.g
, previously unusable land is cleared for production), what happens to the aggregate economic rents in this market? A) Decrease
B) Increase
C) Remain the same
D) We do not have enough information to answer this question.
A
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If the United States placed an embargo on Swedish products, what would happen in the U.S. market for Swedish furniture?
A) The demand curve would shift to the right. B) The supply curve would shift to the right. C) The supply curve would shift to the left. D) The demand curve would shift to the left.
What is the relationship between debt, falling commodity prices and rainforest degradation?
What will be an ideal response?
Total utility is determined by:
a. multiplying the quantity purchased of a good by the price of the good. b. finding the additional utility gained from consuming one more unit of a product. c. summing the marginal utilities for each successive units of a product consumed. d. summing the number of units of a good consumed. e. dividing the marginal utility derived from consuming a good by its price.
Consumer surplus equals the
a. value to buyers minus the amount paid by buyers. b. value to buyers minus the cost to sellers. c. amount received by sellers minus the cost to sellers. d. amount received by sellers minus the amount paid by buyers.