Which of the following is unlikely to occur as a result of a price support program?
A) A reduction in consumer surplus
B) A reduction in producer surplus
C) An increase in quantity purchased
D) An economic cost to government
E) Improved economic efficiency
B
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Everything else held constant, when prices in the art market become more uncertain
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the demand curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate falls.
The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89 . In order to boost ticket revenues, an economist would advise:
a. decreasing the price of hockey match tickets because demand is elastic b. increasing the price of hockey match tickets because demand is elastic. c. not changing the price of hockey match tickets because demand is unit elastic. d. increasing the price of hockey match tickets because demand is inelastic.