Refer to the figure above, which shows domestic supply and demand. If P1 is equal to P2 (the world price) plus a tariff, then the social loss from the tariff is equal to

When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.

a. true b. false

An increase in a firm's capital stock ________ in the marginal benefit of hiring labor

A) will cause no change B) will cause a decrease C) will cause an increase D) may cause an increase, a decrease, or no change