Week 10 Eco Quiz 1
Recently the price of a popular perfume has increased by $10. How will the price change likely affect the quantity
demanded and supplied?
A
Supply will stay the same, and demand will increase.
B
с
Supply will decrease, and demand will increase.
Supply will increasle, and demand will decrease.
Supply will increase, and demand will stay the same.
D

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces

Which of the following is one disadvantage of renting a place to live compared to buying a home? a. tenants have to pay for all repairs to the building. b. the landlord covers the expenses of maintaining the property. c. residents can't alter their living space without permission. d. rent is generally more than monthly mortgage payments.

The undress company produces a dress that women use to quickly and easily change in public. the company is just over a year old and has been successful through a kickstarter campaign. the undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the kickstarter family, what question must it answer?