According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. Area FG would be transferred to the consumer.
B. Area DE would be transferred to the consumer.
C. Area DEFG would be transferred to the consumer.
D. Area FG would be transferred to the producer.
B. Area DE would be transferred to the consumer.
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Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes can charge a different price in the morning and in the afternoon, then in the afternoon, it will rent out ________ bike(s) and charge ________ per bike.
A. 5; $10 B. 1; $8 C. 3; $4 D. 2; $6
About how many people out of 7 billion live on just $1.25 a day in the world?
A. 700 million B. 500 million C. 1.5 billion D. 2 billion
The improved health of a nation can increase:
A. economic growth and malnutrition among children. B. productivity of workers and fiscal policy spending. C. the productivity of workers and economic development. D. economic development and illiteracy.
Assume Sally is initially in equilibrium and that X and Y are normal goods for her. Then the price of X rises. For Sally to move to a new equilibrium point, her consumption of
A. X must increase. B. X must remain constant, but her consumption of Y must increase. C. both X and Y must increase. D. X must decrease.