Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity
What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower levels of bad cholesterol?
A) S increases, D no change, P decreases, Q increases.
B) D increases, S no change, P and Q increase.
C) D no change, S increases, P decreases, Q decreases.
D) D and S increase, P and Q decrease.
B
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Which of the following statements is FALSE?
A) A correct measure of a firm's economic cost includes both accounting and opportunity cost. B) The accounting profit earned by a firm will always be less than its economic profit. C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources. D) The accounting profit of a firm is its total revenue minus total explicit costs.
Suppose Alice sells a good for $60 on eBay. If the producer surplus from the sale is $25, Alice's cost of the good must have been:
A. $35. B. $25. C. $60. D. $85.