If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below.If the regulated pay-per-view charge to watch a fight were $15 per household, then ________ households would watch the fight, and the loss is total economic surplus would be ________ relative to when there is no charge to watch the fight.

A. 10 million; $225 million
B. 10 million; $25 million
C. 20 million; $25 million
D. 20 million; $225 million


Answer: D

Economics

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Opponents of using the inflation tax to finance government budget deficits argue that:

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In 2002, the euro replaced the currencies of most of the members of the European Union. The euro has:

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Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. Initially buyers believe that 50% of used cameras in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer cameras are sold in equilibrium?

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Economics