Since rent control ________ the total surplus of the market, the policy generates a ________.
A. decreases; producer surplus
B. increases; producer surplus
C. decreases; deadweight loss
D. increases; deadweight loss
Answer: C
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Buyers who buy in bulk are often offered discounts. This is an example of:
A) predatory pricing. B) first-degree price discrimination. C) third-degree price discrimination. D) second-degree price discrimination.
When the population increases with no change in labor productivity, employment ________ and potential GDP ________
A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases
Demand
What will be an ideal response?
If output is at 3 units, then the market ____ allocative efficiency and _____ productive efficiency.
Use the table below to answer the following question.
| Units | Maximum Willingness to Pay | Market Price | Minimum Acceptable Price |
| 1 | $14 | $8 | $2 |
| 2 | 12 | 8 | 4 |
| 3 | 10 | 8 | 6 |
| 4 | 8 | 8 | 8 |
| 5 | 6 | 8 | 10 |
| 6 | 4 | 8 | 14 |
A. achieves, achieves
B. achieves, does not achieve
C. does not achieve, achieves
D. does not achieve, does not achieve