Sarah's demand curve for whiskey has the same slope as Pete's; however, it lies to the right of Pete's. An increase in the price of whiskey will cause
A) Sarah to incur a greater loss of consumer surplus than Pete will.
B) Pete to incur a greater loss of consumer surplus than Sarah will.
C) Sarah and Pete to incur the same loss of consumer surplus.
D) Sarah's demand curve to shift closer to Pete's.
A
You might also like to view...
Invisible hand is a term used by the economist ______ to describe how the decisions of households and firms lead to desirable market outcomes
Fill in the blank(s) with correct word
A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions. What is the result?
A. Consumers of the chemical solvents will be willing to pay the full amount of the tax, and so the quantity produced will be unaffected. B. Demand for the chemical solvents will increase. C. The quantity of chemical solvents produced now will be the efficient amount. D. Demand for the chemical solvents will decrease.