The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
As a result of this embargo, the exporting countries not participating in the embargo gain Area
A. a.
B. b.
C. c.
D. (b + c).
Answer: B
Economics
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Refer to the above figure. If real disposable income is less than $5,000, then saving is
A) negative. B) 0. C) positive. D) none of the above: cannot be determined with the given information.
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Refer to the table above. What is the total revenue when the monopolist charges a price of $3?
A) $1,050 B) $1,350 C) $1,750 D) $2,750
Economics