An increase in the price of pizza will shift the demand curve for pizza to the left
a. True
b. False
Indicate whether the statement is true or false
False
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Consider a lake stocked with fish. The total value of fish caught at the lake depends on the number of fishers, as shown in the accompanying table. As the table indicates, 1 fisher can catch $36 worth of fish in a day, 2 fishers can catch a total of $66 worth of fish, 3 fishers can catch a total of $90 worth of fish, and so forth. The fishers are identical, and the opportunity cost of a day at the lake is $18 for each fisher.
(i) Complete the table by calculating the value of each fisher's catch, on average, and the social marginal benefit of the lake.
(ii) If use of the lake is nonexcludable, how many fishers come to the lake? What is the total value of their catch? What is their total cost? What is the social gain from the existence of the lake?
(iii) What is the optimal number of fishers at the lake? What is the social gain if this optimum is achieved?
(iv) What entrance fee would lead to the optimal outcome?
When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction
Indicate whether the statement is true or false
The only way to rationalize an upward slope for the short-run aggregate-supply curve is to argue that wages are sticky in the short run
a. True b. False Indicate whether the statement is true or false
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What does profit equal when quantity equals 2?
A. $2 B. $16 C. $14 D. -$2