Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $90, you would expect that the price of sunglasses would
A. fall to $30, so firms could sell their excess supply.
B. fall to $60, where quantity demanded equals quantity supplied.
C. remain at $90, because firms would not want to reduce the price.
D. fall, but the new price is indeterminate from the information provided.
Answer: B
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Which of the following shifts the supply curve of popcorn leftward?
A) a decrease in the price of popcorn B) an increase in the price of popcorn C) a technological development in the production of popcorn D) a decrease in the number of popcorn suppliers E) a decrease in the cost of producing popcorn
Total surplus equals:
A. consumer surplus + producer surplus ? deadweight loss. B. consumer surplus ? producer surplus ? deadweight loss. C. consumer surplus ? producer surplus + deadweight loss. D. consumer surplus + producer surplus.
The price elasticity of demand between rifles and bullets is likely to be:
A. negative, because the goods are complements. B. positive, because the goods are complements. C. negative, because the goods are substitutes. D. positive, because the goods are substitutes.
If C = 1,500 + 0.75Y and I = 500, then planned saving equals planned investment at aggregate output level of
A. 2,666.67. B. 8,000. C. 10,000. D. 20,000.