In a wedge the equilibrium quantity is where ...
What will be an ideal response?
The vertical gap between the curves = the size of the tax
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Which area in the above figure equals the producer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H + I + J + K + L B) A + B + C + D + E + F + G + H + I + J + K C) A + B + C + D + E + F + G + H D) C + D + E + F + G + H
Which of the following is true of a price floor?
a. A price floor allows supply and demand to function effectively. b. A price floor is set such that the price is not allowed to increase above a certain level. c. A price floor is beneficial to buyers in a market. d. A price floor usually creates a shortage of a good in a market. e. A price floor is set such that the price is not allowed to decrease below a certain level.
India and China are
A. LDCs. B. NICs. C. industrialized countries.
The inflation rate is best described as ___.
A. a growing economy B. nominal GDP C. an expansion D. rising prices