Which of the following statements is not correct?
a. If Fiona gets a higher wage and works more, the substitution effect is greater than the income effect for her.
b. If Miguel experiences a wage decrease and works less, the income effect is greater than the substitution effect for him.
c. If the substitution effect is greater than the income effect, the labor-supply curve is upward sloping.
d. If the income effect is greater than the substitution effect, the labor-supply curve is downward sloping.
b
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At the current price of a good Al's consumer surplus equals 8 and Ben's consumer surplus equals 15. By using two-part pricing a monopolist could increase his profit by
A) 8. B) 16. C) 15. D) 30.
If the government imposes a price ceiling that is lower than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.