A shift of the supply curve is caused by a change in a good's own price.
Answer the following statement true (T) or false (F)
False
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If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs. B) profits are maximized. C) costs are minimized. D) economic efficiency is achieved.
Under a system of marketable pollution permits:
A. firms with lower costs of reducing emissions are likely to sell permits to those with higher costs of reducing emissions. B. environmentalists can decrease pollution by purchasing permits. C. the government can decrease the amount of pollution to the desired level. D. All of these are correct.
Suppose Good Z is a normal good. Which of the following will increase the demand for Good Z?
A. an increase in the price of its complements B. an increase in the price of its substitutes C. a decrease in income D. a lower expected future relative price of Good Z
A typical university football program requires alumni to join one of several booster clubs (each club gets seats in different parts of the stadium) before the person can buy season tickets. What has this got to do with consumer surplus?
What will be an ideal response?