The above table gives the market demand and market supply schedules for soda. There are no external benefits or external costs. What is the efficient quantity of soda?
A) 1400
B) 1000
C) 600
D) It is impossible to determine the efficient quantity without more information.
Question 2
In the figure above, if a minimum wage of 6 per hour has been imposed and the labor demand curve then shifts from D0 to D1 the wage rate ________ and the amount of employment ________.
A) falls; decreases
B) does not change; increases
C) does not change; decreases
D) falls; increases
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