Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have
A. remained constant at $5.00.
B. moved from $7.00 to $5.00.
C. moved from $5.00 to $7.00.
D. remained constant at $7.00.
Answer: A
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If the United States imposes a tariff on $1 per imported shirt, the tariff will
A) raise the price of a shirt to U.S. consumers. B) benefit U.S. shirt producers. C) decrease imports of shirts into the United States. D) all of the above
Which of the following statements is true about productive and allocative efficiency?
A. Realizing allocative efficiency implies that productive efficiency has been realized. B. Productive efficiency can only occur if there is also allocative efficiency. C. Society can achieve either productive efficiency or allocative efficiency, but not both simultaneously. D. Productive efficiency and allocative efficiency can only occur together; neither can occur without the other.