Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity

A singer would willingly perform in a concert for $100,000. If she is paid $500,000 for the concert, she is

A) receiving $500,000 to cover her opportunity cost. B) not being paid her full opportunity cost. C) receiving $400,000 of economic rent. D) certainly being paid more than warranted by the level of demand.

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective, a. a smaller quantity of the good is exchanged. b. a smaller quantity of the good is demanded. c. a larger quantity of the good is supplied

d. the price rises above the previous equilibrium.