Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question,After trade, at a world price of Pw, the net gain of consumer surplus equals area(s)
A. B + C.
B. D.
C. B + C + E + F.
D. E + F.
Answer: C
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Most movie theatres charge different prices to different groups of customers for movie admission but not on movie popcorn. Which of the following is a reason for this?
A) because the markup on movie popcorn is very high and movie theatres do not want to forgo this source of revenue B) because it is easier to limit resale in movie admissions but not in popcorn C) because the cost of operating a concession stand in a movie theatre is very high compared to the cost of showing a movie D) because the demand for popcorn is very high relative to the demand for movie admissions
The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment