【題目】 Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold and in a decrease in total spending on illegal drugs by drug users?
The price elasticity of supply for illegal drugs is 0.8.
The price elasticity of demand for illegal drugs is 1.3.
The interdiction has the effect of shifting the demand curve for illegal drugs to the right.
The interdiction has the effect of shifting the supply curve for illegal drugs to the right.
【題目】 If the price of the Walkman is below the equilibrium price, there will be a _______ of Walkmans and the price will _______.
surplus; fall
shortage; rise
surplus; rise
shortage; fall
【題目】 Assume that we have a demand curve of the form.log(Q)=a-b×log(P)+c×log(I), where Q=quantity, P=price, I=income, and a, b, and c are positive constants. The income and price elasticities for the demand curve represented above are always
equal to one.
equal(i.e., income elasticity always equals price elasticity).
equal to zero.
constant.
【題目】 A decrease in the supply
increases both its equilibrium price and its equilibrium quantity.
decreases both its equilibrium price and its equilibrium quantity.
lowers its equilibrium price and increases its equilibrium quantity.
raises its equilibrium price and decreases its equilibrium quantity.
【題目】 Consumer surplus is:
the difference between the price one is willing to pay and the price one has to pay
the price one is willing to pay divided by its actual price
negative for an inferior good
the difference between the substitution and income effect