For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will
A) decrease.
B) increase.
C) become negative.
D) none of the above due to insufficient information.
B
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Changes in the short-run total costs result from changes in only
A) variable costs. B) fixed costs. C) zero. D) total fixed costs.
When a tariff is imposed, the supply curve for the imported good
A) shifts downward and to the right. B) shifts upward and to the left. C) does not change. D) becomes perfectly inelastic.
Without usury laws interest rates would be _____________________.
Fill in the blank(s) with the appropriate word(s).
Answer the following questions true (T) or false (F)
1. Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price. 2. A positive technological change will cause the supply of a good to increase. 3. An decrease in quantity supplied is represented by a leftward shift of the supply curve.