Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?
A) The price would increase, the demand would increase, and the supply would decrease.
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase.
C) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease.
D) The price would increase, quantity demanded would increase, and quantity supplied would decrease.
C
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Determination of a public good depends only upon the technical characteristics of the good
a. True b. False
The poverty income threshold in the United States was originally calculated by
A) multiplying a nutritionally adequate food plan for emergency use by 4. B) multiplying a nutritionally adequate food plan for emergency use by 2. C) multiplying a nutritionally adequate food plan for emergency use by 3. D) multiplying a nutritionally adequate food plan for emergency use by 5.