The above figure shows the U.S. market for 1 carat diamonds. With free trade, Americans buy ________ diamonds and pay a price of ________ per diamond

A) 300,000; $4,000
B) 500,000; $4,000
C) 700,000; $3,000
D) 300,000; $3,000
E) 900,000; $2,000

E

Economics

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The balance between efficiency and equality is an illustration of a. scarcity

b. trade-offs. c. the forces of supply and demand. d. none of the above.

Economics

Figure 4-4


Given the demand and supply conditions shown in , if the government imposes a price ceiling of a, which of the following would be true?
a.
Consumers would want to buy r units.
b.
Consumers would want to buy s units.
c.
Producers would wish to sell s units.
d.
Producers would wish to sell r units.

Economics