With a price floor:
A. producer surplus will increase if profits increase.
B. producer surplus will increase is profits fall.
C. producer surplus will decrease if profits increase.
D. producer surplus always decreases.
A. producer surplus will increase if profits increase.
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In July 2008, a British pound could buy $2. By October 2008, a pound could buy $1.55. Over the four months, the
A) pound depreciated against the dollar. B) the real exchange rate did not change. C) pound appreciated against the dollar. D) the U.S. inflation rate increased.
Supply and demand analysis
a. can be used to understand solutions to pollution, but not causes. b. can be used to analyze how externalities lead to environmental problems. c. cannot be used to analyze pollution, which is a physical and chemical problem. d. cannot be used to solve the pollution problem, but can be used to analyze it.