Category: Economics

Part AThe richest one-fifth of the world’s population possesses approximatelytimes the income of the poorest one-fifth, and the richest one-fifth uses over 86% of the world’sresources.4080206010

QUESTION (1)
ANSWER
is people trading goods or services with one another, usuallyAgreed worth in return for money but also in return for time or barter.
◻Equal valueValueExchange
◻IDON’T KNOWYET

A supply curve shows that as prices rise the:
number of products demanded stays the same.
quantity of products produced rises.
quantity of products produced declines.
equilibrium point shifts upward.

Producer surplus is smaller when the price is $70 than when it is $50. False
In order for Lucia to earn a producer surplus of exactly $20 from selling a used air fryer, the market price must be

Show me the steps to solve If the government imposes a price floor that is below the equilibrium price, then the market will experience: an equilibrium. a shortage. an excess supply. no scarcity.
Step-by-step solution
Define a price floor: a legal minimum price sellers are allowed to charge for a good or service.
Determine binding vs non-binding: a price floor is binding only if it is set above the equilibrium price; if it is below equilibrium, it is non-binding.
When the floor is non-binding (below equilibrium), the market-clearing price and quantity remain determined by supply and demand, so transactions occur at the equilibrium price.
Since the floor does not constrain the market, there is no shortage or excess supply; the market stays at equilibrium.
Correct answer:
an equilibrium.