Another term for the real-balance effect is

The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is

A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.

Mike is able to complete a tax return in two hours earning a fee of $100 . As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour. His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour. Both individuals could benefit if

a. Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed b. Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed. c. Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed d. Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed