A tax of $1 on buyers always decreases the equilibrium price by $1
a. True
b. False
Indicate whether the statement is true or false
False
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The following equations represent the demand and supply for kumquats
QD = 60 - 3P QS = -20 + 5P What is the equilibrium price (P) and quantity (Q - in thousands) of kumquats? A) P = $20; Q = 10 thousand B) P = $5; Q = 20 thousand C) P = $30; Q = 5 thousand D) P = $10; Q = 30 thousand
The intangible costs associated with reduced quality of life include:
a. potential income lost due to premature death. b. the cost of home remodeling to accommodate a physical handicap. c. pain and suffering. d. household services that must be replaced, such as housework. e. lost productivity at work.
Using resources in such a way as to maximize the production of goods and services is called ____________ .
a. efficiency. b. underutilization. c. thinking at the margins. d. growth.
A firm will shut down in the short run if
A. MR < AVC. B. MR > AVC. C. AVC < AFC. D. P > MC.