題目:Raisin bran and milk are complementary goods. A decrease in the price of raisins will 答案:increase consumer surplus in the market for raisin bran and increase producer surplus in the market for milk.
題目:If price exceeds average costs under pure competition, in the long run ,______ firms will enter the industry, supply will ______, and price will be driven ______. 答案:more; increase; down
【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 zero. ...
題目: Nick can purchase each milkshake for $2. For the first milkshake purchased Nick is willing to pay $4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the value of Nick's consumer surplus? 答案: 3