Refer to Figure 9.1. If the government establishes a price ceiling of $20, total consumer and producer surplus will be
A) $30.
B) $400.
C) $600.
D) $900.
E) $1200.
D
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If the price of Sea World tickets increased what might we expect to see happen to tickets for Disneyland?
A. Decreased supply of Disneyland tickets B. Increased demand for Disneyland tickets C. Decreased demand for Disneyland tickets D. Increased supply of Disneyland tickets
Which of the three product has a unitary elastic demand curve?
a. Cigarettes b. Alcohol c. Sodas d. None of the above
Which of the following reasons for making drugs sales illegal do economists generally see as potentially legitimate, but beyond their area of expertise?
A. The harm that addictive drugs do to innocent victims and that they do not allow for people to learn from the mistake of taking them. B. That addictive drugs do not allow for people to learn from the mistake of taking them. C. The harm they do to innocent victims. D. Drugs are immoral and allowing them to be sold is immoral.
This graph shows three different budget constraints: A, B, and C.
If Bart has budget constraint A in the graph shown, what would cause his budget constraint to shift to B?
A. The price of soda has decreased. B. The price of milk has increased. C. Bart's income has decreased. D. The price of soda has increased.