Studying the determination of prices in individual markets is primarily a concern of
A) positive economics.
B) negative economics.
C) macroeconomics.
D) microeconomics.
D
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The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a perfectly competitive market, the change in producer surplus is
A) B + C. B) D + E. C) A + B + C. D) A + B + C + D + E.
Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures b. fall during periods of prosperity, thus increasing inflationary pressures c. rise during periods of prosperity, thus reducing inflationary pressures d. fall during recessions, thus increasing the problem of unemployment e. rise during recessions, thus increasing the problem of unemployment
As the price elasticities of supply and demand increase, the deadweight loss from a tax increases
a. True b. False Indicate whether the statement is true or false
If demand increases and supply simultaneously decreases, equilibrium price will rise.
Answer the following statement true (T) or false (F)