Sammy has a drone that he values at $1,500. Frank values the same drone at $1,000. The government offers a subsidy of $800 to the buyers of drones, and Sammy and Frank agree on a price of $1,600
Producer surplus is ________ and consumer surplus is ________. A) $100; $200
B) $700; $600
C) $200; $1,400
D) $300; $100
A
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The permanent-income hypothesis seeks primarily to explain the
A) observed long-term constancy of the saving ratio. B) observed variation in the short-term saving ratio. C) unimportance of transitory income changes. D) All of the above are correct.
Because of the absolutism concept of poverty, a poor family in the United States will fall within the same category as a poor family in Cuba
a. True b. False Indicate whether the statement is true or false
Explain how taxes are levied in a progressive income tax system and the rationale for choosing a progressive income tax structure
Several years ago, a bookstore chain extended its closing time from 9 p.m. to 10 p.m. Now it is considering a further extension to 11 p.m. In making this marginal decision, the results of having gone from 9 p.m. to 10 p.m. are
A) no longer relevant to the current decision. B) relevant if the marginal costs and benefits were unequal. C) relevant since they are part of the calculation of total costs and benefits. D) relevant if the marginal costs and benefits were equal.