The price of a good will fall if
A) there is a surplus at the current price.
B) the current price is less than the equilibrium price.
C) the quantity demanded exceeds the quantity supplied.
D) the price of a complement in consumption falls.
A
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In the above figure, suppose that the government sets a limit to production at 10 units of output and the price rises to $4. In comparison to a competitive market the consumer surplus would fall by
A) $0. B) $10. C) $15. D) $20.
Summarize the effects of a production quota on the market price and the quantity produced
What will be an ideal response?
The idea that a person wants to have a bigger house in order to outdo his or her neighbors is referred to as:
A. the incentive compatibility problem. B. luxury fever. C. enlightened self-interest. D. irrational.
A change in the price of a good ____ its supply curve and ____ a movement along its supply curve. Question 10 options:
A. shifts; does not cause B. shifts; causes C. does not shift; causes D. does not shift; does not cause E. None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the