Question 17-21 refer to the following graph   From the indifference curve, we see the consumer is indifferent between (18 pizzas, 2 sodas) and   

Suppose the government imposes a price floor at B. Consumer surplus with the price floor equals the area defined by which points?

A parent trying to decide between working while enrolling their child in expensive private child care and staying at home and caring for their child illustrates what economic principle?

Question 14-16 considers the market for milk. Suppose there is a 25% increase in income, what happens to the quantity demanded of milk?

For question 23-25, you are given the following data The buyers’ bid is the maximum they are will to spend for a single good and the sellers’ bid is the minimum they are willing to sell a single good for.   What is the producers surplus?

For questions 10-13, the following graph describes the market for train tickets.   What is consumer surplus when there is a $8 tax?

In a market, supply is perfectly elastic and demand is perfectly inelastic. If a tax is imposed in this market, .                  bears the entire burden of the tax and the equilibrium quantity                        .

What type of externality is illustrated by the bees’ pollination of crops?

Private goods can be provided by competitive markets because they are:

What does “internalizing an externality” mean?