Refer to the figure below. If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.

If a tax on a good is doubled, the deadweight loss from the tax

a. stays the same b. doubles c. increases by a factor of four d. could rise or fall

Which of the following about demand is true?

a. The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit. b. The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed. c. The total area above the demand curve for a product is equal to consumer surplus. d. At every quantity, the height of the demand curve for a product represents the cost of producing that unit.