Author Question: Suppose early one Friday morning the economics club buys 200 donuts at 25 cents each, and plans to ... (Read 38 times)

penza

  • Hero Member
  • *****
  • Posts: 1,022
Suppose early one Friday morning the economics club buys 200 donuts at 25 cents each, and plans to sell all of them later in day on campus for 50 cents each.
 
  Only 60 donuts are sold at 50 cents, however, and by early afternoon the club is seen trying to unload the remaining donuts for 10 cents each. What is the correct price of one of donut? A) 10 cents
  B) 25 cents
  C) 50 cents
  D) Stated this way, the question is meaningless.

Question 2

The decrease in social surplus from a market distortion is referred to as:
 
  A) deadweight loss.
  B) market loss.
  C) revenue loss.
  D) Pareto loss.



apple

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

For a complete list of videos, visit our video library