Rent-seeking activities are socially wasteful because they use scarce resources but do not add to society's output

Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units

What is the value of economic surplus in this market? A) $600 thousand B) $1,050 thousand C) $1,500 thousand D) $2,100 thousand

Good A is a Giffen good. If the price of good A were to suddenly double, the income effect would cause the purchases of good A to increase by

A) more than double. B) exactly double. C) less than double. D) Any of the above are possible. E) none of the above