Refer to Figure 4-2. What area represents the decrease in producer surplus when the market price falls from P2 to P1?
A) B + D B) A + B C) C + E D) A + C + E
Question 2
Refer to Figure 5-1. Suppose the current market equilibrium output of Q1 is not the economically efficient output because of an externality. The economically efficient output is Q2. In that case, the diagram shows
A) the effect of an external cost imposed on a producer.
B) the effect of a positive externality in the production of a good.
C) the effect of a negative externality in the production of a good.
D) the effect of an external benefit such as a subsidy granted to consumers of a good.
Female leopard in the Sabi Sands area of South Africa. Note the white spot on its tail, used for com
Angioplasty. One form is called balloon angioplasty, shown here. A balloon catheter is threaded into
Chest CT scan. The stringy, cobweblike area indicates lung damage from smoking that has resulted in
A slave market in Marrakesh, Morocco. This lithograph is from the 1800s.
Figure and Ground
Assume z is a standard normal random variable. What is the value of z if the area to the right ...