Price ceilings can result in a net loss in consumer surplus when the ________ curve is ________
A) demand; very elastic
B) demand; very inelastic
C) supply; very inelastic
D) none of the above; price ceilings always increase consumer surplus
B
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A rise in the real interest rate ________ consumption expenditure and ________
A) decreases; shifts the consumption function downward B) decreases; results in a movement downward along the consumption function C) decreases; shifts the consumption function upward D) increases; shifts the consumption function upward E) increases; shifts the consumption function downward
Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?
What will be an ideal response?
To analyze intra-industry trade, we must bring in imperfect competition, and we change our assumptions about our trade models to allow:
a. price-conscious consumers. b. short-run unemployment. c. differentiated products. d. perfect competition.
A firm can capture value through market power or through superior factors of production. The rent earned through the use of superior factors of production is
A. Bushian rent. B. monopoly rent. C. Ricardian rent. D. housing rent.