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Which of the following will occur in the market for bicycles if the government establishes a binding price floor?

Instead of being employed at a printing company at a salary of $25,000 per year, Sally starts her own printing firm. Rather than renting a building that she owns to someone else for $10,000 per year, she uses it as the location for her company. Her costs for workers, materials, advertising, and energy during her first year are $125,000. If the total revenue from her printing company is $155,000, her total economic profit is

The figure presents a graph in the first quadrant of a coordinate plane, with the origin labeled 0. The horizontal axis is labeled Units of Output, and the following values are indicated from left to right: Q sub 1, Q sub 2, Q sub 3, Q sub 4, Q sub 5. The vertical axis represents price, in U S dollars. The graph has three curves that are labeled M C, A V C, and A T C. Curve M C begins in between the vertical axis and quantity Q sub 1, and about one fourth of the way up the vertical axis. It moves downward and to the right, reaches a minimum slightly to the left of quantity Q sub 1, and then turns to steeply move upward and to the right. It ends just to the right of quantity Q sub 5, near the top of the graph. Curve A V C begins slightly above and slightly to the right of where Curve M C begins, and moves downward and to the right. It intersects Curve M C at quantity Q sub 2, and then turns to move upward and to the right. It ends far to the right of quantity Q sub 5, and below where Curve M C ends. Curve A T C begins just to the right of where Curve A V C begins, and about three fourths of the way up the vertical axis. It steeply moves downward and to the right, intersects Curve M C at quantity Q sub 3, and then turns to steeply move upward and to the right. It ends just to the left and slightly above where Curve A V C ends. The following 5 points are identified on the graph: R, S, T, W, V. From Q sub 1 on the horizontal axis, a vertical grid line emanates upward and touches Curve M C, which identifies Point R. From Q sub 2 on the horizontal axis, a vertical grid line emanates upward and touches the intersection of curves M C and A V C, which identifies Point S. From Q sub 3 on the horizontal axis, a vertical grid line emanates upward, crosses Curve A V C, and touches the intersection of curves M C and A T C, which identifies Point T. From Q sub 4 on the horizontal axis, a vertical grid line emanates upward, crosses Curve A V C, and touches Curve A T C, which identifies Point W. From Q sub 5 on the horizontal axis, a vertical grid line emanates upward, crosses curves A V C and A T C, and touches Curve M C, which identifies Point V. The graph above shows the cost curves for May’s Fruit Farm, where MC is marginal cost, ATC is average total cost, and AVC is average variable cost. May’s short-run supply curve includes which of the following points?

The American Heart Association has just issued a report warning consumers about the negative health effects of eating beef. Which of the following changes in the beef market is most likely to occur as a result?

The figure presents a short run production function graph with the origin labeled 0. The horizontal axis is labeled Quality of Labor, and the value L sub 0 is indicated at the middle of the axis. The vertical axis is labeled Total Product. A curve labeled Total Product begins at the origin and moves upward and to the right until it reaches its maximum height at a point directly above L sub 0. It then curves downward and moves downward and to the right, and ends at approximately half the height if its highest point. Based on the short-run production function graph above showing the relationship between the quantity of labor and total product, which of the following statements is true?

When Tom’s income increases from $100 to $120, the quantity of golf balls he purchases increases from 10 to 12. What is Tom’s income elasticity of demand, and what type of good is a golf ball for Tom?

The following questions refer to the diagram below. The letters on the graph represent enclosed areas. A graph in the first quadrant is shown with price on the vertical axis and quantity on the horizontal axis. Three values P sub 1, P sub 2, and P sub 3 are labeled on the vertical axis from bottom to top. Two lines are plotted, one labeled demand starting on the vertical axis above P sub 3 and decreasing, and the other labeled supply starting on the vertical axis below P sub 1 and increasing. The two lines intersect at a nearly right angle near the center of the graph. Horizontal dashed reference lines are drawn from each value on the vertical axis with the line from P sub 3 intersecting the demand curve then the supply curve above their intersection, the line from P sub 2 meeting the supply and demand curves at their intersection, and the line from P sub 1 intersecting the supply then the demand curve below their intersection. Vertical dashed reference lines are drawn from two unlabeled values on the horizontal axis, one that meets the supply and demand lines at their intersection and the other to the left of it that crosses the supply line at the same point as the line from P sub 1 and the demand line at the same point as the line from P sub 3. Eight regions bounded by the plotted lines and reference lines are labeled with letters f through m. Region f is the triangular area above the line P sub 3 and below the demand line. Region g is a rectangular area between the P sub 2 and P sub 3 lines and to the left of region h with is a triangular area above the P sub 3 line and also beneath the demand line. Region i is a rectangular area between lines P sub 2 and P sub 1 and is to the left of region j which is a triangular area below the P sub 2 line and it connected to, but above region l which is a triangular area above the P sub 1 line and to the left of region m with is a triangular area above the P sub 1 line. Region k is a rectangular region below the P sub 1 line and above the supply line. If a price ceiling is set at P1, which of the following areas represent the resulting consumer surplus, producer surplus, and deadweight loss?

The figure shows a graph of 2 lines labeled Supply and Demand in the coordinate plane with the origin labeled 0. The horizontal axis is labeled Quantity, and the numbers 4, 6, and 8 are evenly spaced along the middle of the axis. The vertical axis is labeled Price, in dollars, and the numbers 4, 6, and 8 are evenly spaced along the middle of the axis, and the number 12 is indicated at the top of the axis. The supply line begins at coordinates 0,0 and moves upward and to the right. It passes through the coordinates 4, 4, 6,6, and 8,8 and continues a short distance upward and to the right and ends. The demand line begins at coordinates 0,12 and moves downward and to the right. It passes through the coordinates 4,8, 6,6, and 8,4 and downward and to the right and ends slightly above the horizontal axis to the right of 8. The two lines intersect at coordinates 6,6. Apples are produced in a perfectly competitive market with no government intervention. Which of the following price changes will cause the total economic surplus to increase for the apple market depicted in the graph provided?

Which of the choices outlines the area corresponding to the deadweight loss created by the tax? A graph in the first quadrant is shown with price on the vertical axis and quantity on the horizontal axis. Two parallel lines are plotted starting in the lower left corner and increasing with the upper line labeled S sub 1 and the lower line labeled S, and a double ended arrow labeled t points between them. A third line labeled D is plotted starting in the upper left corner and decreasing, intersecting both increasing lines near the center of the graph. Three values P sub 1, P sub 0, and P sub 2 equals P sub 1 minus t are labeled from top to bottom on the vertical axis, and two values Q sub 1 and Q sub 0 are labeled from left to right on the horizontal axis. Dashed reference lines are drawn from these labeled values. Five points G through K are labeled on the graph. Point G has coordinates Q sub 1 and P sub 1 and is at the intersection of lines D and S sub 1. Point H has coordinates Q sub 1 and P sub 0 and is between lines S sub 1 and S, below line D. Point I has coordinates Q sub 1 and P sub 2 and is on line S. Point J has coordinates Q sub 0 and P sub 1 and is between lines S sub 1 and S, above line D. Point K has coordinates Q sub 0 and P sub 0 and is at the intersection of lines D and S.

The figure shows a graph of 4 curves in a plane. The horizontal axis is labeled “Quantity,” and the value Q asterisk is indicated near the middle. The vertical axis is labeled “Price.” The four curves are labeled M R, A V C, A T C, and M C. The M R curve begins on the vertical axis near the middle, moves horizontally to the right in a straight line, and ends above the end of the horizontal axis. The A V C curve begins slightly to the right of the vertical axis and above the M R curve, moves downward and to the right, intersects the M R curve, and continues downward and to the right to a minimum to the left of quantity Q asterisk and a little below curve M R. Curve A V C then moves upward and to the right, intersects curve M R again slightly to the right of quantity Q asterisk, and continues a short distance to end a little above curve M R. The A T C curve begins to the right of the top of the vertical axis and moves downward and to the right to a minimum at quantity Q asterisk a short distance above curve M R. Curve A T C then moves upward and to the right and ends high above the end of the horizontal axis. The M C curve begins to the right of the vertical axis below curve M R and moves downward and to the right a short distance to reach a minimum to the left of quantity Q asterisk approximately halfway between the horizontal axis and curve M R. Curve M C then moves upward and to the right steeply, intersects curve A V C below curve M R, then intersects curve M R slightly to the left of quantity Q asterisk, and intersects curve A T C at quantity Q asterisk and above curve M R. Curve M C continues upward and to the right and ends slightly to the right of quantity Q asterisk high above the horizontal axis. The graph provided shows the marginal revenue (MR) ), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) curves for a perfectly competitive firm. Which of the following is true if the firm is currently producing Q* units of output?