Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the price of tote bags is $15. At this price
A) there is a shortage equal to 55 tote bags; the price of tote bags will rise until demand is equal to supply.
B) the demand exceeds the supply of tote bags by 55. Some consumers will have an incentive to offer to buy tote bags at a higher price.
C) the quantity demanded exceeds the quantity supplied by 75. The price will eventually rise to $25 where quantity demanded will equal quantity supplied.
D) there is a shortage, equal to 55 tote bags, that will be eliminated when the price rises to $25.
D
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Think about indifference analysis. If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would
a. also be indifferent between 4 units of A and 9 units of B b. also be indifferent between 8 units of A and 5 units of B c. prefer 6 units of A and 8 units of B d. give up 1 unit of A to acquire 2 units of B e. not trade a unit of A for any units of product B
Minimum-wage laws matter most for the least skilled and least experienced members of the labor force, such as teenagers
a. True b. False Indicate whether the statement is true or false