Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
A) $5 per quart and 300 quarts of beer
B) $3 per quart and 500 quarts of beer
C) $3 per quart and 100 quarts of beer
D) $1 per quart and 300 quarts of beer
B
Economics
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When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis:
A) is constant. B) is measured in dollar terms. C) is measured by the amount of the other good that must be given up. D) usually decreases.
Economics
Suppose Lisa spends all of her money on books and bagels, and a bagel is an inferior good for her. When the price of coffee increases, the
A) consumption of coffee will fall. B) consumption of coffee will rise. C) consumption of coffee will not change. D) Not enough information.
Economics