Which of the following is evidence of a surplus of bananas?
A) Firms raise the price of bananas.
B) The price of bananas is lowered in order to increase sales.
C) The equilibrium price of bananas rises due to an increase in demand.
D) The quantity of bananas demanded is greater than the quantity supplied.
Answer: B
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The graph shown demonstrates a tax on sellers. What is the amount of tax revenue being generated from the tax?
A. $150
B. $80
C. $310
D. $135
Suppose a tax of $5 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $10,000 and decreases producer surplus by $15,000 . The deadweight loss of the tax is $2,500 . The tax decreased the equilibrium quantity of the good from
a. 6,500 to 5,500. b. 5,500 to 4,500. c. 5,000 to 3,000. d. 6,000 to 4,000.
Scarcity is the most basic concept in economics.
Answer the following statement(s) true (T) or false (F)
Enforcement of antitrust policy is the responsibility of
A) the Trust Division of Congress and the World Trade Organization. B) the Federal Trade Commission and the Antitrust Division of the Department of Justice. C) the World Trade Organization and the FDA. D) the Food and Drug Administration and Congress.