Multiple Choice: 12. Which of the following will cause an increase in producer surplus? A. buyers ex 1 answer below »

Multiple Choice:

12. Which of the following will cause an increase in producer surplus?

A. buyers expect the price of the good to be lower next month

B. income increases and buyers consider the good to be inferior

C. the imposition of a binding price ceiling in the market

D. the price of a substitute increases

24. Scenario 9-1 The before-trade domestic price of peaches in the United States is $40 per bushel. The world price of peaches is $52 per bushel. The U.S. is a price-taker in the market for peaches.

Refer to Scenario 9-1. If trade in peaches is allowed, the

A. total well-being of the United States is enhanced relative to the no-trade situation.

B. total well-being of American consumers of peaches is enhanced relative to the no-trade situation.

C. total well-being of American producers of peaches is diminished relative to the no-trade situation.

D. price paid by American consumers of peaches is unchanged relative to the no-trade situation.

25. When a country allows trade and becomes an importer of jet skis,

A. domestic producers of jet skis are worse off, domestic consumers of jet skis are better off, and the economic well-being of the country falls.

B. domestic producers of jet skis are better off, domestic consumers of jet skis are worse off, and the economic well-being of the country falls.

C. domestic producers of jet skis are better off, domestic consumers of jet skis are worse off, and the economic well-being of the country rises.

D. domestic producers of jet skis are worse off, domestic consumers of jet skis are better off, and the economic well-being of the country rises.

True or False:

29. A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

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