Explain the difference between a change in demand and a change in quantity demanded
What will be an ideal response?
A change in demand is represented by a shift in the demand curve and can be caused by changes in non-price determinants of demand such as income, preferences, or prices of related goods. A change in quantity demanded is represented by a movement along the demand curve and is caused by a change in the price of the good in question.
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If price support policy increases producer surplus more than reducing consumer surplus, then
A) the policy leads to a Pareto-superior allocation. B) the policy leads to an increase in social welfare. C) the policy improves the efficiency of society. D) None of above.
A “conservative” would most likely argue in favor of
A. tax increases when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. B. tax cuts when fiscal restraint is necessary, and spending cuts when fiscal stimulus is necessary. C. tax cuts when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. D. spending increases when fiscal expansion is necessary, and tax increases when fiscal stimulus is necessary.