Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to
a. only existing customers who now get lower prices on the gowns they were already planning to purchase.
b. only new customers who enter the market because of the lower prices.
c. both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
d. Consumer surplus does not increase; it decreases.
c
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After the Civil War, wheat production became regionally specialized and output production in the Midwest increased consequently
Indicate whether the statement is true or false
Supply shocks:
A. occur more frequently than demand shocks. B. usually result from fiscal and monetary policy changes. C. occur when sellers face unexpected changes in the availability and/or prices of key inputs. D. have been responsible for most of the recessions in the United States since World War II.
If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, then supply of the good will ________ by ________ demand and the price of the good will ________
A) increase; more than; increase B) decrease; more than; decrease C) decrease; less than; decrease D) decrease; the same amount as; remain the same
If investment is interest-insensitive,
A) monetary policy has no impact on equilibrium income. B) monetary policy has no impact on the equilibrium interest rate. C) fiscal policy has no impact on equilibrium income. D) fiscal policy has no impact on the equilibrium interest rate.