Author Question: The old adage that a bird in the hand is worth two in the bush refers to a. a normal good b. ... (Read 49 times)

burton19126 · **on:** Jun 30, 2018

The old adage that a bird in the hand is worth two in the bush refers to
a. a normal good
b. opportunity cost
c. scarcity
d. a positive rate of time preference
e. a willingness to forgo current consumption in order to achieve increased future consumption

Question 2

Tina Makumbi imports sesame oil from Ethiopia and sells to a market that has a downward sloping demand curve.The demand curve indicates that some consumers are willing to pay 1.50 or more per pound for the first few pounds, but every consumer gets to buy at the market clearing price of 0.50 per pound. The difference between the most that consumers would pay and the actual amount they do pay is called
a. exporter surplus
b. trade balance
c. producer surplus
d. consumer equilibrium
e. consumer surplus