If a price floor is set below the equilibrium price:

(Table: Canada and Mexico’s Production Possibilities) Based on the table: Canada’s Production Possibilities Tons of Steel Airplanes 15 0 10 4 5 8 0 12 Mexico’s Production Possibilities Tons of Steel Airplanes 6 0 4 2 2 4 0 6

An effective price floor results in a:

(Figure: Bread and Honey) In the graph, a move from point a to point b costs:

Suppose that your car gets 40 miles to the gallon. Assuming D = distance or number of miles your car can drive and that G = the number of gallons of gasoline in your fuel tank, the relationship between the number of miles your car can drive and the amount of gas in your fuel tank is captured by which equation?

(Figure: Determining Surplus) In the market depicted in the graph, what is the formula for producer surplus?

Instead of spending five hours studying for an economics exam, Oksana could have spent the time at the beach or pick up an extra shift at work. If Oksana enjoys the beach more than the extra money earned from work, what is Oksana’s opportunity cost of studying for the exam?

(Figure: Corn and Oil in the United States and the United Kingdom) Refer to the graphs for the United States and the United Kingdom. If the starting point is point a, what is the opportunity cost of the United States producing 15 more barrels of oil?

As a hurricane approaches, a local government enacts price-gouging laws, i.e., price ceilings on various items—such as gas, bottled water, and nonperishable foods—for which demand spikes during weather-related emergencies. Such laws:

The assumption that people make rational decisions implies that people: