Trade restrictions that lead to higher prices will increase _____________ but decrease ______________.
a. Everyone's level of consumption; unemployment.
b. Foreign exporter enthusiasm; The difference between equilibrium price and what producers must receive in order to make an item available for sale.
c. Consumer Surplus: Producer Surplus.
d. Producer Surplus; Consumer Surplus.
e. The gap between equilibrium price and what consumers are willing to pay; The return to all factors of production in the protected industries.
Trade restrictions that lead to higher prices will increase _____________ but decrease ______________.
a. Everyone's level of consumption; unemployment.
b. Foreign exporter enthusiasm; The difference between equilibrium price and what producers must receive in order to make an item available for sale.
c. Consumer Surplus: Producer Surplus.
d. Producer Surplus; Consumer Surplus.
e. The gap between equilibrium price and what consumers are willing to pay; The return to all factors of production in the protected industries.
For unlimited access to Homework Help, a Homework+ subscription is required.
Related textbook solutions
Related questions
Michael spends all of his income on coffee and donuts. A coffee costs $2.50 and a donut costs $2.00. At his current consumption level, the marginal utility for coffee is 30 utils, and the marginal utility for a donut is 60 utils. Which statement best describes what Michael needs to do to maximize his utility?
Question 1 options:
| |||
| |||
| |||
|
Question 2
What is it called when the marginal utility derived from the last dollar spent on each good is the same across all goods and the last dollar spent uses all of the available budget for the purchase of those goods?
Question 2 options:
| |||
| |||
| |||
|
Question 3 (1 point)
What does the economic theory of marginal utility infer?
Question 3 options:
| |||
| |||
| |||
|
Question 4
Kate is addicted to chocolate and does not care how much it costs. In fact, she spends more than $20 a week on chocolate. What can be concluded about elasticity in her buying decisions?
Question 4 options:
| |||
| |||
| |||
|
Save
Question 5 (1 point)
Why does the demand for a good become relatively more elastic?
Question 5 options:
| |||
| |||
| |||
|
Save
Question 6 (1 point)
Assume the price of chicken per pound is $3.49 and that Americans purchase 10 million pounds per chicken every month. If the price of chicken increases to $5.49 per pound, identify what will occur to consumer surplus?
Question 6 options:
| |||
| |||
| |||
|
Question 7 (1 point)
What is another name for the difference between the price that consumers are willing to pay for a good and a lower price that they may actually have to pay?
Question 7 options:
| |||
| |||
| |||
|
Question 8
Adam, Brian, Robert, and Sam all want to attend a football game. The admission price is $48. Adam is willing to pay $59 for the ticket. Brian is willing to pay $39. Robert is willing to pay $45, and Sam is willing to pay $55. Based on this information, who will go to the game?
Question 8 options:
| |||
| |||
| |||
|
Save
Question 9 (1 point)
Lily is willing to pay $10 for one bracelet and $5 for a second. Patty is willing to pay $12 for one bracelet and $2 for a second. If the price is currently $8 per bracelet, identify what is the total consumer surplus after Lily and Patty make their purchases?
Question 9 options:
| |||
| |||
| |||
|
Question 10 (1 point)
Manfred is willing to shovel one driveway for $25, a second for $30, and a third for $35. Assume that the market rate for shoveling driveways is $32. How many driveways will Manfred shovel, what will be his total revenue, and what will be his producer surplus?
Question 10 options:
| |||
| |||
| |||
|
Save
Question 11 (1 point)
What would the difference between the price that producers receive and the lower price at which they are willing to sell the good be called?
Question 11 options:
| |||
| |||
| |||
|
Save
Question 12 (1 point)
What will happen when there is an increase in the price of eBook downloads?
Question 12 options:
| |||
| |||
| |||
|
Save
Question 13 (1 point)
When is price elasticity of demand utilized to measure how an individual changes the quantity they demand?
Question 13 options:
| |||
| |||
| |||
|
Save
Question 14 (1 point)
Assume Mary consumes only tea and pastries. A cup of tea costs 5 euros and a pastry costs 8 euros. Her weekly income is 450 euros. Mary always drinks 2 cups of tea for every pastry she consumes. What is Maryâs optimal weekly consumption bundle?
Question 14 options:
| |||
| |||
| |||
|
Save
Question 15 (1 point)
When is producer surplus a positive value?
Question 15 options:
| |||
| |||
| |||
|