Author Question: In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight ... (Read 67 times)

Cooldude101 · **on:** Jun 29, 2018

In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal

A) 0, because 2,000 gloves per day is an efficient quantity of gloves to produce.
B) 2,000.
C) 5,000.
D) 10,000.

Question 2

Waldo buys only two items, pretzels and ham sandwiches. Waldo has 24 in income, pretzels cost 0.60 per bag and ham sandwiches cost 2.40 each.

If Waldo's budget line is constructed with ham sandwiches along the horizontal axis and bags of pretzels along the vertical axis, then A) the horizontal intercept of the budget line will be 40 ham sandwiches.
B) the vertical intercept of the budget line will be 10 bags of pretzels.
C) the slope of the budget line will be -4 bags of pretzels per ham sandwich.
D) All of the above answers are correct.