Sarah and David both have linear demand curves for lemonade. Sarah's demand curve for lemonade intersects David's demand curve at a price of 50 cents per glass. Sarah's demand curve is more inelastic than David's
A change in the price of lemonade from 50 cents to 25 cents per glass will A) decrease Sarah's consumer surplus more than David's.
B) decrease David's consumer surplus more than Sarah's.
C) increase Sarah's consumer surplus more than David's.
D) increase David's consumer surplus more than Sarah's.
D
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If the Fed had not changed the money supply after the recession in the early 1990s, then the long run effects would have been
a. a return to the original output and price level b. increased long run GDP equilibrium and price level c. unchanged long run output, but an increased price level d. a decreased long run output and price level e. a return to the original long run output, but a decreased price level
A business produces eight items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is:
A. $20. B. $200. C. ?$190. D. $10.