Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. Which of the following is true?
A) If the price of iced tea is $3, producers will sell 30,000 units of iced tea but this output will be economically inefficient.
B) If the price of iced tea is $3, consumers will purchase more than the economically efficient output.
C) Both 10,000 and 30,000 are economically inefficient rates of output.
D) If the price of iced tea is $3, the output will be economically efficient but there will be a deadweight loss.
C
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The United States is a net importer of capital. This means
a. that U.S. citizens own more foreign assets than foreigners own U.S. assets. b. that citizens of other countries are buying more U.S. assets than Americans are buying abroad. c. only that U.S. citizens own foreign assets. d. only that foreign citizens own U.S. assets. e. that citizens of other countries are buying fewer U.S. assets than Americans are buying abroad.
If a pet grooming salon hires an additional groomer, that worker can groom 4 additional pets per day. The average grooming fee is $25. The most the salon would be willing to pay that groomer is
A. $4 per day. B. $25 per day. C. $100 per day. D. indeterminate with the given information.
Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping section, decreasing the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
If the demand for a good increases because consumer income increases, the good is a(n):
a. inferior good. b. normal good. c. necessity good. d. luxury good.