In the last three decades of the 19th century, the long-run supply track of farm prices
(a) indicates a decline in farm prices due to a slowly increasing demand and a more rapidly increasing supply.
(b) indicates a decline in farm prices due to a slowly increasing supply and a more rapidly increasing demand.
(c) indicates an increase in farm prices due to a slowly increasing supply and a more rapidly increasing demand.
(d) indicates relatively constant prices due to the fact that supply and demand were both increasing
at about the same rate.
(a)
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In the above figure, what is the total consumer surplus from all the milk bought if the price of milk is $3.00 per gallon?
A) $16 million B) $12 million C) $4 million D) $2 million
Why does nearly every purchase you make provide you with consumer surplus?
A. Because most consumers who trade in a market have a willingness to pay lower than the price, this means that few trades in a market provide consumer surplus. B. Because most consumers who trade in a market have a willingness to pay greater than the price, this means that most trades in a market provide consumer surplus. C. Most of the goods that a consumer purchases are expensive. Because these purchases are expensive, consumer surplus is very high. D. Most of the goods that a consumer purchases are inexpensive. Because these purchases are inexpensive, the consumer is provided with consumer surplus.
Refer to the information provided in Figure 23.8 below to answer the question(s) that follow.
Figure 23.8Refer to Figure 23.8. The amount of planned investment increases if the interest rate
A. remains at 8%. B. drops from 8% to 4%. C. rises from 4% to 8%. D. remains at 4%.
If the nominal interest rate increases without any change in the rate of inflation:
A) the ratio of real interest rate to nominal interest rate increases. B) the real interest rate increases. C) the real interest rate decreases. D) the real interest rate remains the same.