When producers price their items, they should realize there will usually be a consumer surplus when the items are sold. What does this mean to them?
a. They should price items one dollar above the market equilibrium price.
b. They should price items somewhat higher than what consumers are willing to pay for them.
c. They should price items exactly at what consumers are willing to pay for them.
d. They should price items somewhat lower than what consumers are willing to pay for them.
d. They should price items somewhat lower than what consumers are willing to pay for them.
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If the demand elasticity for corn in the current marketing is -0.5 and you know that the demand curve is linear and it goes through 10 billion bushels at a price of $5.00 per bushel, then if production turns out to be 12 billion bushels, the price of corn will be
A. $3.00 B. $4.00 C. $5.00 D. $6.00
Under a gold standard, a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out
Indicate whether the statement is true or false