Which of the following will cause an increase in producer surplus?
a. the imposition of a binding price ceiling in the market
b. buyers expect the price of the good to be lower next month
c. the price of a substitute increases
d. income increases and buyers consider the good to be inferior
c
You might also like to view...
In a quasi-experiment
A) quasi differences are used, i.e., instead of ?Y you need to use ( - λ × ), where 0 < λ < 1. B) randomness is introduced by variations in individual circumstances that make it appear as if the treatment is randomly assigned. C) the causal effect has to be estimated through quasi maximum likelihood estimation. D) the t-statistic is no longer normally distributed in large samples.
While in office, President Obama discussed raising income taxes for individuals earning over $250,000 in income. Explain how these higher income taxes would affect the aggregate demand curve
What will be an ideal response?