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Explore key concepts in economics such as profits calculation, supply curve movements, and equilibrium prices through engaging multiple-choice questions. Enhance your knowledge and grasp economic principles effectively.
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Clicker Check-in Survey: Do you own an Ipod? • Yes • No
A demander with Buyer Value $50 buys an object from a supplier with Seller Cost $20. The sum of the buyer’s and the seller’s profit is: • larger, the greater the price. • the same at all prices between $20 and $50. • smaller, the greater the price. • None of the above.
Why is that? • Buyer’s profit=BV-Price • Seller’s Profit =Price –SC • Buyers Profit +Seller’s profit= (BV-Price)+(Price-SC)=BV-SC So sum of buyer’s and seller profit is BV-SC regardless of price.
If more fish are caught on Day 2 than on Day 1, then between Day 1 and Day 2, the supply curve • Shifts to the right. • Becomes flatter. • Becomes steeper. • Shifts to the left 5 Shifts vertically
Sunk costs are costs that do not change with the number of units sold. • True • False
If the price of gasoline doubles, but the number of fish caught stays the same, happens to the equilibrium price of fish? • It will go up, but not quite double. • It will stay the same. • It will exactly double.
