Suppose we observe a decrease in the equilibrium price of tuna and an increase in the equilibrium quantity of tuna. This is best explained by:
A. a decrease in the cost of fuel used by tuna fishing boats.
B. a decrease in the expected future price of tuna.
C. an increase in the price of salmon, a substitute for tuna.
D. a decrease in the tuna population in the oceans.
Answer: A
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Refer to the above table. Given the demand and cost schedules, what are the maximum economic profits for this monopolist?
A) $155 B) $143 C) $175 D) $164
A price ceiling might be an appropriate government response to a
a. period of falling farm prices due to unusually good harvests b. substantial increase in farm productivity due to marked applications of new technology in agriculture c. national security crisis leading to major shortages of essential goods d. period of extraordinary large surpluses of farm goods e. good in which the demand is considerably less than the supply
The form of government debt that was created to allow more people to buy and hold government debt is the
a. Treasury bond b. Treasury bill c. Treasury note d. savings bond e. savings bill
With perfect price discrimination the monopoly
a. eliminates all price discrimination by charging each customer the same price. b. charges each customer an amount equal to the monopolist's marginal cost of production. c. eliminates deadweight loss. d. eliminates profits and increases consumer surplus.