Refer to the diagram. If drawn, the long-run aggregate supply curve would include points:
A. v, w, and u.
B. y, w, and u.
C. t, w, and z.
D. y, w, and x.
B. y, w, and u.
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Many middle-to-older-aged men now claim they "need" Viagra (the male impotency wonder drug) for an enjoyable sex life. The economic way of thinking predicts
A) more men would be likely to claim they need Viagra if the price per pill were much lower (say two cents each) compared to the current price. B) fewer men would be likely to claim they need Viagra if the price per pill were much higher (say, two hundred dollars each) compared to the current price. C) other things constant, more prescriptions would be written if the price of Viagra falls significantly. D) other things constant, fewer prescriptions would be written if the price of Viagra rises significantly. E) all of the above are true.
When y changes, x stays the same. The line depicting this relationship would be
A) vertical. B) horizontal. C) linear with a negative slope. D) linear with a positive slope.
If a monopoly engages in first-degree price discrimination:
A) social surplus is maximized. B) consumer surplus is maximized. C) producer surplus is minimized. D) the deadweight loss is maximized.
The benefits principle states that the users of a service should pay for that service
a. True b. False Indicate whether the statement is true or false