Suppose that Tom bought a bike from Lauren for $195. If Lauren’s reservation price was $185 and Tom’s reservation price was $215, the total economic surplus from this transaction was

Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?

Suppose the market demand curve is given by Qd = 80 − 10P, and the market supply curve is given by Qs = 10 + 15P. What is the equilibrium price and quantity?

According to the textbook, the evidence indicates that NAFTA has

If either the production or consumption of a good generates an external cost, then the market equilibrium quantity will be

One reason the demand curve slopes ______ is that as prices fall ______.

Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?

Suppose that Tom bought a bike from Lauren for $195. If Lauren’s reservation price was $185 and Tom’s reservation price was $215, the total economic surplus from this transaction was

A seller’s reservation price is generally equal to

Suppose that the equilibrium price of apples decreases, and the equilibrium quantity of apples increases. This is best explained by