What is the difference between accumulative vs. decisive risk?

Suppose, instead, that the government imposes a tax of $6 per Grubhub delivery. What is the producer surplus in this scenario?

A new kind of consumption good, the “smidget” is invented in Econland. Suppose that the impact of the invention on the widget market is that the price Pwidget decreases while the quantity Qwidget remains unchanged. A possible explanation for why this happened is that widgets and smidgets are __________ and the supply curve for widgets is __________.

Which of the following statements are true about the deadweight loss of a tax? (i) It tends to be larger when taxes are larger. (ii) It is zero when supply is perfectly inelastic. (iii) It is zero when demand is perfectly inelastic.

Consider the market for housing. Suppose that after a decrease in consumer’s income, the price of houses fell down while the quantity of houses remained the same. Which of the following is a possible explanation for why this happened?

Consider public transportation, namely the subway trains in New York city. Suppose consumers’ income increases and that, as a result, the equilibrium quantity Qtrain remains unchanged, and the price Ptrain decreases. Which of the following is a possible explanation for why this happened?

Consider the following two statements:  If there is an increase in the number of people getting education, then the poverty rate will go down. The government should increase funding for education in schools and universities.

Consider the market for regular doughnuts. A new kind of fusion food, called “Mochi donuts” is invented in Econland. These mochi donuts are made from a hybrid batter that makes doughnuts that are flaky and moist, with a satisfying chew. Suppose that the impact of this invention in the market for regular doughnuts is that the price of regular doughnuts remains unchanged, and the equilibrium quantity decreases. A possible explanation for these changes is that “Mochi donuts” and regular doughnuts are ________________ and the supply of regular doughnuts is _____________________________. (Fill in the blanks.)

If the government is concerned about the excessively low price in the unregulated free market equilibrium above, it could impose a __________. If the government sets the price at $8, there is _________ and the amount is equal to __________. 

 Consider the following statements about income elasticity: For inferior goods, income elasticity is negative. For necessity goods, income elasticity is above one. When income elasticity for a good is more than one, the share of income spent on the good is higher with higher income.