Question

33. A product that has a negative income elasticity of demand is a. a complement good. b. a normal good. c. a substitute good d. an inferior good. Suppose the Chicago Enforcers football team increases ticket prices by 10 percent and as a result the quantity of tickets demanded decreases by 7 percent. This response means that the demand for Enforcers tickets is a. unit clastic. b. elastic c. perfectly elastic. d. inelastic. 34. 35. When a market reaches allocative efficiency, the a. producer surplus is maximized b. total surplus is maximized. c consumer surplus is maximized d. deadweight loss is maximized. 36. Adam Smith's Invisible Hand Theorem suggests that a. firms' profit maximizing behavior increases producer surplas b. individual self-interests lead markets to the efficient quantity c. government intervention is needed to guide markets to the efficient quantity. d. individual self-interests prevent markets from producing the efficient quantity 37. By definition, consumer surplus is the a. amount the consumer actually pays b. amount the consumer is willing to pay. c. difference between what a consumer d. difference pnec willing to accept. 38. In a figure that shows a supply curve and a demand curve, prodacer surplus is the area a. above the supply curve and below the demand curve. b. below the demand curve and above the market price. c. below the supply curve and above the market price. d. above the supply curve and below the market price A minimum wage set above the equilibrium wage will labor supplied and a. increase; increase b. decrease; decrease c. decrease; increase d. increase; decrease the quantity of 39. the quantity of labor demanded

Answer 1

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