The term "surplus" refers to a:
A. situation in which the quantity supplied is less than the quantity demanded.
B. situation in which the quantity demanded is less than the quantity supplied.
C. market that sells secondary goods.
D. signal that producers need to increase the price of the good.
B. situation in which the quantity demanded is less than the quantity supplied.
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Which of the following has been a significant factor in DVDs replacing video cassettes (VCs) in the retail home video market?
A) DVDs are now less than one-half the price of VCs. B) A scarcity of production capacity has curtailed the manufacture of VCs. C) Most consumers perceive DVD sound and video reproduction to be of higher quality. D) The price of DVD players has increased dramatically.
The effects of a quota include:
A) decreasing consumers' surplus. B) increasing total revenue for the importers who sell the allowed number of imported units. C) increasing producers' surplus. D) b and c E) a, b, and c