Refer to Figure 18.4. With a tariff or quota, what is the equilibrium quantity of gloves in Duckland?
A) 100 B) 80 C) 60 D) 40
B
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Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model
Indicate whether the statement is true or false
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $12 and quantity equal to 140. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. reduce consumer surplus by $240. B. give government tax revenues of $100. C. reduce consumer surplus by $200. D. give government tax revenues of $280.
Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. increase the demand for medical services and the share of those services financed by third parties. b. push both healthcare prices and expenditures upward. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
If a two percent increase in the price of bananas leads to a two percent decrease in the quantity of bananas demanded, then the demand for bananas is
A) elastic. B) inelastic. C) unit-elastic. D) perfectly inelastic.