ECON 101 Exam Solutions Winter 2018: Social Cost, Economic Equilibrium, Monopolistic Competition
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ECON 101 Full Course Notes
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The formula for deadweight loss is the same as the formula for the area of a triangle. Understand the characteristics of the different types of indifference curves. Understand the characteristics of the different types of markets: the correct answer is c. the law of supply suggests that as price increases, producers have more of an incentive to provide their goods and services. The converse is true: consumers will have an incentive to consume more with a subsidy. A new equilibrium price and quantity will be established. From the data, an equilibrium quantity of 3000 will be produced and consumed when producers receive a . 30 cent subsidy and charge consumers. The marginal cost is the price plus the subsidy or . 50: the correct answer is c. this question tests our understanding of fixed, variable, and marginal costs. So if rent is increased by a week, its average fixed curve should shift upward.