The figure above shows the market for coffee. If more coffee plantations are planted in Brazil and Vietnam so that the supply of coffee increases, the efficient quantity of coffee will ________ and the consumer surplus will ________
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
A
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Which of the following statements is true of Bitcoin transactions?
a. All Bitcoin transactions are published on the Internet, but individuals' identifying addresses are kept confidential. b. Bitcoin customers' addresses are published on the Internet but the transaction details are kept confidential. c. In terms of confidentiality, Bitcoins rank slightly below checking accounts but far above cash transactions. d. One benefit of Bitcoins is they cannot be lost to computer hackers.
The most profitable price for a monopolist is
A) the highest price a consumer is willing to pay for the monopolist's product. B) the price at which demand is unit elastic. C) a price that maximizes the quantity sold. D) found where the profit-maximizing quantity hits the demand curve.
Refer to Goods X and Y. Suppose the consumer is at an optimum, spending all his income on good X. How are the marginal value of X and the relative price of X related at this corner solution?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. The marginal value of X and the relative price of X must be equal. b. The marginal value of X must be less than or equal to the relative price of X. c. The marginal value of X must be greater than or equal to the relative price of X. d. There is no definite relationship between the marginal value and the relative price of X.
Comment on the following statement: "If the provision of public goods was left to private firms, the outcome would be more efficient than what occurs when the government provides them."
What will be an ideal response?