One way for the federal government to maintain milk price supports (price floor) is to purchase the surplus milk, that results when the support price is higher than the market equilibrium price. Thus consumers pay both an artificially high price for milk, and as taxpayers, they also pay for the surplus milk
Indicate whether the statement is true or false
true
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What is the equilibrium quantity in this market?
a. 4 units b. 8 units c. 12 units d. 16 units
The net present value (NPV) is ________.
A) present value of the future operating profits from an investment plus the present value of the cost of the investment B) future operating profits from an investment minus the cost of the investment C) present value of the future operating profits from an investment minus the present value of the cost of the investment D) future operating profits from an investment plus the cost of the investment
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, the original world price is ________ and the amount of the tariff is ________.
A. $100; $30 B. $215; $115 C. $175; $45 D. $100; $130
The income effect of a normal good is negative.
a. true b. false