The figure illustrates the market for coffee in Guatemala. With trade, total surplus in the Guatemalan coffee market amounts to
1, 250
b. 1,468
c. 1,870
d. 1,980.
Answer: c. 1,870
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Indicate whether the statement is true or false
When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.
A. price; increase B. price; decrease C. quantity; increase D. quantity; decrease
Why has the federal government generally run budget deficits over the past several decades?
A) Political pressures make expenditures hard to control. B) The federal government's control of the money supply enables it to borrow indefinitely without becoming unable to find creditors. C) The public has accepted the notion that budget deficits can be good for the economy. D) A combination of the three factors mentioned above.
The above figure shows supply and demand curves for milk. If the government passes a $2 per gallon specific tax, the tax revenue is
A) $2 ? Q1. B) $2 ? Q2. C) $2 ? (Q2 - Q1). D) $2.