Deadweight loss:
A. occurs when the market price is set above the equilibrium price.
B. occurs when the market price is set below the equilibrium price.
C. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.
D. All of these are true.
D. All of these are true.
You might also like to view...
The figure above shows the market for iPods. Which of the following creates a movement from point A to point B?
A) a decrease in the price of Zunes, a substitute for iPods B) a requirement that all students at universities have an iPod C) a decrease in the price of iPods D) an increase in the price of iPods E) an increase in people's incomes
Explain the relationship between the interest rate on a bond and the default risk on a bond
What will be an ideal response?
Although foreign exchange market trades are said to involve the buying and selling of currencies, most trades involve the buying and selling of
A) bank deposits denominated in different currencies. B) SDRs. C) gold. D) ECUs.
In repeated games, all of the below make it easier to get out of bad situations except
a. Be nice, no strikes first b. Respond immediately to rivals c. Punish competitors as much as you can d. Make sure your competitors can easily interpret your actions