According to the graph shown, if the supply increases, then
A. consumer surplus would increase.
B. consumer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
B. consumer surplus would decrease.
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If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
An implication of the fact that the labor market is perfectly competitive is that:
A) there is always some unemployment. B) the labor demand curve is upward sloping and the labor supply curve is downward sloping. C) the quantity of labor demanded always exceeds the quantity of labor supplied. D) a worker willing to work at the equilibrium wage rate can instantly find work.
The ________ is the price of one good ________ the price of another good
A) relative price; times B) relative price; divided by C) budget; times D) budget; divided by
Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. If the firm sets output by focusing on private costs, the per-unit external cost will equal
A) P2. B) P4 - P2. C) P4 - P1. D) P2 - P1.