The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to

A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.

Answer: C

Economics

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Refer to Figure 5-4. What does S2 represent?

A) the market supply curve that reflects external cost B) the market supply curve that reflects social benefit C) the market supply curve that reflect private cost D) the market supply curve that reflects social cost

Economics

Suppose the inverse supply curve in a market is Q = 6p2. What is the producer surplus when price is equal to 4?

A) 96 B) 128 C) 28 D) 48

Economics