Why does producer surplus decrease as price decreases?
A. Producers sell less of the good while consumers buy even more of the good.
B. Consumers buy more of the good at the lower price.
C. Producers sell less of the good and receive less from the lower price.
D. Producers sell more of the good but receive less from the lower price.
Answer: C
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Which of the following illustrates the medium-of-exchange function of money?
A) writing a check to buy a new Volkswagen B) noting that the price of a $20,000 Volkswagen is 16,000 euros C) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen D) driving your $20,000 Volkswagen to a friend's house
A jar has 20 red jelly beans and 40 black jelly beans. If you pick a red jelly bean and put it back, what are the odds of picking a black jelly bean next?
A) 20/40 B) 20/60 C) 40/60 D) 1 (100%)