Which of the following is TRUE regarding marginal benefit? I) The marginal benefit curve shows the benefit firms receive by producing another unit of a good. II) Marginal benefit increases as more of a good is consumed

Refer to the above figures. A quota is placed on a foreign good. Which figure represents the situation in the domestic market for a competing domestic good?

A) Panel A B) Panel B C) Panel C D) Panel D

An increase in the price of good x will be accompanied by:

a. a shift in the market demand curve for good x. b. a shift in the market demand curve for good y (a substitute for good x). c. a movement along the market demand curve for good x. d. both b and c.