According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A) a shortage of 30 million gallons.
B) an increase in quantity demanded of 10 million gallons.
C) an increase in quantity supplied of 20 million gallons.
D) an increase in demand of 20 million gallons.
C
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In the above figure, the economy would most likely move from AD1 to AD2 because of
A) an aggregate supply shock. B) an aggregate demand shock. C) a recession. D) a depression.
Some colleges charge all students the same fee for a weekly dining services meal plan. Suppose that students differ by how much food they consume each week. For example, members of the women's swimming team consume, on average, twice as much food as the average female college student, and the average male college student consumes 20 percent more food than the average female college student. The
dining services fee is most like a(n) a. excise tax that conforms to the benefits principle. b. excise tax that violates the benefits principle. c. lump-sum tax that conforms to the benefits principle. d. lump-sum tax that violates the benefits principle.
If a firm that pollutes wants to maximize profits, it will produce where
A. Marginal revenue and private marginal cost are equal. B. The social value of production equals the social cost of production. C. Social benefits exceed social costs. D. Private and social costs are equal.
The monopolistically competitive firm shown in the figure:
A. is in long-run equilibrium.
B. might realize an economic profit or a loss, depending on its choice of output level.
C. cannot operate profitably in the short run.
D. can realize an economic profit.