Assume Nadia voluntarily leaves a job with a salary of $100 per day to open and run a restaurant instead. After deducting all explicit costs from the restaurant revenues, Nadia has a gain of $120. Assuming there are no additional implicit costs, which of the following statements is true?

Consumer surplus exists because of the

In a perfectly competitive market, a change in which of the following could cause a shift in the supply curve?

The graphs show Mary’s demand for hamburgers and Mark’s demand for hamburgers. Suppose Mary and Mark are the only two consumers in the market. The figure presents 2 demand curves in the first quadrant of separate coordinate planes. One is titled Mary’s Demand, and the other is titled Mark’s Demand. On both graphs, the horizontal axis is labeled Quantity, and the numbers 0 through 8, in increments of 1, are indicated. On both graphs, the vertical axis is labeled Price, and the numbers 0 through 12, in increments of 2 dollars, are indicated. In the graph titled Mary’s Demand, the curve begins at 10 dollars on the vertical axis, and moves downward and to the right in a straight line until it ends at quantity 5 on the horizontal axis. It passes through the following points: 1 comma 8 dollars, 2 comma 6 dollars, 3 comma 4 dollars, and 4 comma 2 dollars. In the graph titled Mark’s Demand, the curve begins at 8 dollars on the vertical axis, and moves gradually downward and to the right in a straight line until it ends at the quantity 8 on the horizontal axis. It passes through the following points: 2 comma 6 dollars, 4 comma 4 dollars, and 6 comma 2 dollars. Which of the following is a point on the market demand curve for hamburgers?

If a one-of-a-kind Etruscan vase is offered for sale at an auction, which, if any, of the following correctly shows the supply curve for the vase?

Assume that demand for bottled water is relatively price elastic. An increase in supply of bottled water will result in which of the following?

Based on the graph above, the consumer surplus at the market equilibrium price and quantity is shown by which area? The figure presents a graph in the first quadrant of a coordinate plane with the origin labeled 0. The horizontal axis is labeled “Quantity,” and the quantity Q sub R is indicated about one third of the way along the horizontal axis. The vertical axis is labeled “Price,” and the following prices are indicated, from bottom to top: G, Z, and M. There are two lines on the graph that are labeled D and S. Line D begins at price M, about three fourths of the way up the vertical axis. It moves downward and to the right in a straight line, and ends on the horizontal axis, about two thirds of the way along the horizontal axis, and to the right of quantity Q sub R. Line S begins at price G, about one fourth of the way up the vertical axis. It moves upward and to the right in a straight line, intersects Line D at the point with coordinates Q sub R comma Z, and ends near the top right corner of the graph. There are two points indicated on the lines that are labeled N and K. Point N is located at the intersection of Line D and Line S. From Point N, a dashed vertical line moves downward and hits Q sub R on the horizontal axis. From Point N, a dashed horizontal line moves to the left and hits Point Z on the horizontal axis. Point K is located on Line S, from which a dashed horizontal line emanates to the left and hits Point M on the horizontal axis.

A graph in the first quadrant is shown with price on the vertical axis and quantity on the horizontal axis. Three values W, X, and Y are labeled on the vertical axis with Y less than X less than W, and three values R, S, and T are labeled on the horizontal axis with R less than S less than T. Two lines are plotted, the first labeled supply beginning near the origin and increasing linearly and the second labeled demand starting at point W on the vertical axis and decreasing linearly, intersecting the supply line at point Z which has coordinates price Y and quantity S as indicated by dashed reference lines. Dashed reference lines are also used to indicate point V on the demand line with coordinates price X and quantity R, and point U on the supply line with coordinates price X and quantity T. In a competitive market equilibrium, the area of consumer surplus is given by:

Assume that the price of orange juice increases by 40 percent following a crop failure. If the quantity demanded falls by 10 percent, which of the following is true?

Which of the following will most likely happen in the market for good X if the price of good X decreases?