Author: Anonymous

Assume that the government imposes a binding price ceiling on a market for an inferior good. Which of the following is most likely to occur in the market if consumers’ incomes increase?

Given the demand curve, if price decreases from $8 to $4 per unit, total consumer surplus will The figure shows a graph with a horizontal axis labeled Quantity, a vertical axis labeled Price, in dollars, and an origin labeled 0. Two quantities appear on the horizontal axis, to the right of the origin, from left to right, labeled 3 and 6. Three prices appear on the vertical axis, above the origin, from bottom to top, labeled 4, 8, and 12. A straight line labeled Demand starts at 12 dollars on the vertical axis and moves steadily downward and to the right ending close to the horizontal axis. There are two points on the Demand line. Point J is at the quantity 3 and price 8 dollars, and point K is at the quantity 6 and price 4 dollars.

If the supply of fish increases, there will be

After graduating from high school, Peggy Smith decided to enroll in a two-year program at the local community college rather than to accept a job that offered a salary of $12,000 per year. If the annual tuition and fees are $4,600, the annual opportunity cost of attending the community college is

Table: Total benefit of cleaning up pollution in a community Levels of Clean-Up Total Cost of Clean-Up (S) Total Benefit of Clean Up (S) 0 0 0 1 7 45 2 37 80 3 92 105 4 172 125 5 272 140 The table above shows the total cost and the total benefit of cleaning up pollution in a community. Which of the following cleanup levels is socially optimal?

Which of the following occurs as a result of the substitution effect of an increase in the price of a normal good?

Which of the following will increase the demand for pizza, a normal good?

Which of the following statements about the price elasticity of demand is true?

If a store raises its prices by 20 percent and its total revenue increases by 10 percent, the demand it faces in this price range must be

Assume Pat spends all of her allowance to purchase 4 apples and 4 candy bars. Pat’s marginal utility of the fourth apple is 20 utils, and her marginal utility of the fourth candy bar is 40 utils. If an apple costs $1.00 and a candy bar $0.50, to maximize utility Pat should