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 __________. (Fill in the blanks.)

For the next four questions (questions 20 – 23), assume demand is D1 (the demand curve on the LEFT) and the industry is in long-run equilibrium.

Sonya consumes soda and fish nuggets. In the graph below, you can find the graphical representation of Sonya’s indifference curves as well as three different budget constraints. It is your job to identify which budget constraint(s) to use in each question. Use this information to answer questions 35 – 38.

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.

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

The long-run equilibrium price PLR is

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

The indifference curves above show us that Alya’s indifferent between having (4 tacos, 2 nachos) and

Suppose that a new technology eliminates the negative externality in this market, so that only the positive externality remains. The change in the external benefit when moving from a free market to the optimal policy of a subsidy is captured by the area

Your patient verbalizes feeling worried and anxious about talking with her mother this afternoon.  The patient is twisting her hair, rocking back and forth, and slowly moving her leg back and forth.  This patient’s behavior can be explained using which of the following terms of the personality?