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The indifference curves above show us that Alya’s indifferent between having (15 slices of pizza, 5 cans of coke) and

Suppose that the price of a can of coke increases from $2 to $4, income is $40 and price of a slice of pizza is $2. Alya’s budget constraint is given in the graph above and you will need to identify the correct one. The new optimal consumption bundle is given by ___,

The above graph illustrates the supply and demand for widgets in Econland, where instead Widgets can be obtained in world markets at a price PWorld = R as illustrated.  Suppose initially Econland is in autarky.  Then it opens to free trade with the rest of the world.

A monopolist faces the market environment illustrated below. Use the following graph to answer questions 34 – 37.

Relative to autarky, free trade results in a change in Econland domestic consumer surplus equal to

The slope of the budget constraint represents the ___ while the slope of the indifference curve represents the ___:

The long-run price PLR is

What is Sonya’s optimal consumption bundle? Again, assume that Sonya’s income level is $90, the per unit price of fish nuggets is $6, and the per unit price of soda is $3.

Public goods and common resources are both ___ goods and the difference is that public goods are ___ goods and common resources are _____ goods.

Under what assumptions will the long-run supply curve for the widget industry be perfectly elastic (i.e. perfectly flat)?. (i) The same technology is available to all firms. (ii) One firm has a patent on a technology that is superior to what other firms have access to. (iii) There is a legal limit on the number of firms that can be in the industry. (iv) There are no barriers to entry in the industry. (v) Input prices do not change as the industry expands