Name Willingness to pay Kiara 20 Elena 18 Maya 15 Isabella 13     The willingness to pay for fireworks in Econland is given in the table above. Assume the fireworks is non-rivalrous in consumption and non-excludable. It is socially efficient to have the fireworks if and only if the cost is no higher than

Suppose that the price of one taco falls from $8 to $2 and that both Alya’s income and the price of one nacho remain unchanged at $16 and $2, respectively. What happens to Alya’s quantity demanded for tacos as a result of the decrease in the price of tacos?

The long-run equilibrium price PLR is

The above graph illustrates the supply and demand for widgets in Econland, where instead Widgets can be obtained in world markets at a price PWorld = R as illustrated.  Suppose initially Econland is in autarky.  Then it opens to free trade with the rest of the world. Use this information to answer questions 11 – 15.

Compared to free trade, the size of the producer surplus ____ with the tariff and the size equals____. (Fill in the blanks.)

Ahmed is a consumer who enjoys both ice cream and chocolate. His preferences over these two goods are complete, transitive and non-satiated/monotone, and the two goods are imperfect substitutes. Which of the following statements are true regarding Ahmed’s indifference curves? (i) If the indifference curve containing bundle A is above the indifference curve containing bundle B, then Ahmed prefers bundle A over bundle B. (ii) Ahmed’s marginal rate of substitution between ice cream and chocolate is lower the more ice creams he consumes. (iii) Ahmed’s indifference curves always cross at one point.

Once Econland opens to trade, they will

Continuing the previous question, after demand shifts to D2, in the short run, the profit of each firm will be

Suppose that instead of free trade, the government of Econland sets a tariff on widgets equal to TW. Tariff revenue to the government equals

A patient repeatedly makes the statement “I always get things wrong!”   Later, the patient makes a statement that demonstrates progress resulting from cognitive behavioral therapy. Identify the statement that supports this concept.