If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, the consumer surplus will ________ if the negotiated price is $1.50 as opposed to $2.00
A) increase
B) decrease
C) not change
D) All of the above are possibilities.
A
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Corporate governance refers to the way in which a corporation is structured and the effect that structure has on the corporation's behavior
Indicate whether the statement is true or false
If a firm is a natural monopoly, competition from other firms cannot be counted on to force price down to the level where the company earns zero economic profit. How are prices usually set in natural monopoly markets in the United States?
A) Natural monopolies are privately owned and are allowed to set their own prices. Government regulation of the firms would result in greater deadweight losses. B) Local or state regulatory commissions usually set prices for natural monopolies. C) Natural monopolies are privately owned, but prices proposed by the firms must be approved by the Antitrust Division of the Department of Justice. D) Each natural monopoly is made a public franchise. The public franchise is then required to set its price equal to its marginal cost.
What is necessary for fiscal policy to be sustainable? Why is fiscal policy in countries like Greece, Ireland, Spain, Italy and Portugal not considered sustainable?
What will be an ideal response?
Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply. b. Because producers ignore the external costs they impose on third-parties. c. Because producers manufacture more goods than people can afford to buy. d. Because producers will receive an unequal distribution of profits.