In the above figure, if the quantity is equal to 1,500,000 units, the deadweight is equal to
A) area A + area B.
B) area C.
C) area B + area F.
D) area G + area H.
E) None of the above answers is correct because the deadweight loss is equal to zero.
E
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Suppose nominal GDP in 2009 does not change (compared its previous level in 2008). Given this information, we know with certainty that
A) real GDP increased during 2009. B) the GDP deflator increased during 2009. C) both the GDP deflator and real GDP fell during 2009. D) more information is needed to answer this question.
Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values. Use the table to answer the questions that follow the
table. Quantity of Ice Cream Cones Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Candy Total Utility Marginal Utility 1 20 1 20 2 38 2 38 3 52 3 48 4 62 4 54 a. Complete the table by filling in the blank spaces. b. Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why? What will be an ideal response?