The graph shows the market for holiday condos in West Palm Beach. If a rent ceiling is set at $1,700 a week, the quantity of holiday condos rented
A) is 2,000 a week.
B) is 4,000 a week.
C) is 5,000 a week.
D) is some amount, but more information is needed to determine the amount.
E) depends on the black market.
B
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Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos. Assume that the price of a sub sandwich is $4 and the price of a taco is $2
When Harry's income is $14, he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1. Complete this statement: As a result of the change in price A) Harry's purchasing power has increased. He will reduce his consumption of tacos so he can buy one more sub. This is an example of the substitution effect of a price change. B) Harry's purchasing power has increased. Harry buys fewer tacos. This is an example of the substitution effect of a price change C) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy fewer tacos. This is an example of the income effect of a price change. D) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy more tacos. This is an example of the income effect of a price change.
When economists look at the percentage change in quantity demanded generated by a change in income, they are looking at:
a. price elasticity of demand. b. income elasticity of demand. c. price elasticity of supply. d. cross elasticity of demand. e. cross elasticity of supply.
Does economic growth eliminate scarcity?
When positive externalities exist in a market, if a Pigouvian subsidy is imposed:
A. those who interact in the market will gain surplus. B. those who do not interact in the market, but are affected by the externality, will gain surplus. C. those who interact in the market will lose surplus. D. None of these statements is necessarily true.