Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.
B) too many consumers want to buy iced tea.
C) the quantity supplied is greater than the economically efficient quantity.
D) economic surplus is maximized.
C
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Economics deals with
A) how to profit from the stock market. B) how to satisfy limited human wants. C) how society allocates unlimited resources. D) how individuals allocate scarce resources to satisfy unlimited human wants.
The price-consumption curve: a. connects the various combinations of two goods as a consumer's income changes
b. connects the various combinations of two goods as the relative price of one good changes. c. shows the quantity of a good consumed as a function on income. d. All of the above are correct statements.