In the figure above, for each CD, the price a consumer is willing to pay is equal to the
A) economy's marginal social cost of producing that CD.
B) consumer's own marginal benefit from consuming that CD.
C) consumer's total consumer surplus.
D) Both answers A and B are correct.
B
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Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource
What will be an ideal response?
In the classical model, a tax on labor supply will
a. decrease the demand for labor, increase the real wage, decrease output, and reduce the price level. b. decrease the supply of labor, increase real wages, decrease output, and increase the price level. c. decrease the demand for labor, the real wage, decrease output, and increase the price level. d. have no effect on the labor market, but reduce output and increase the price level. e. increase both labor demand and supply, which will increase output and the price level.