Question

A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?​

Select one:

a.

​An increase in the demand for milk

b.

​An increase in the price of milk

c.

​A leftward shift of the supply curve for milk

d.

​A decrease in the quantity demanded of milk

e.

​A rightward shift of the supply curve for milk

Question 49

Ed is willing to pay a maximum of $200 for a tweed sport coat but buys one for $180. The $20 saved is:​

Select one:

a.

​his consumer surplus.

b.

​the store's producer surplus.

c.

​his marginal utility.

d.

​his total expenditure.

e.

​his reservation price.

Question 50

Not yet answered

When compared to firms in perfect competition, monopolists tend to charge:​

Select one:

a.

​lower prices and offer higher quantities of output.

b.

​higher prices and offer lower quantities of output.

c.

​higher prices and offer higher quantities of output.

d.

​lower prices and offer lower quantities of output.

e.

​higher prices but offer the same quantity of output.

Answer 1

1. When a new cattle feed increases the production of milk is a form of technological advancement which leads to a right shift in the supply of milk.  

The correct option is (e)

2. Ed is willing to pay 200 but pays 180 means the difference 20 is the consumer's surplus.

The correct option is (a)

3. Compared to firms in perfecg competition, monopolist charge a higher price and offer lower quantities of output.

The correct option is (b)