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Chapter%207 - Chapter 7 Which of the following statements...

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Chapter 7 1. Which of the following statements illustrate the concept of efficiency? A) The production of the good generates very little pollution. B) At equilibrium, all mutually beneficial transactions have taken place. C) The production of the good generates very few by-products. D) The consumption of the good produces very little waste. 2. Excess demand in the market is evidence of A) Pareto efficiency B) the opportunity for surplus-enhancing trades C) an economic pie that is too small. D) equilibrium Use the following to answer questions 3-4: Ingrid has been waiting for the show “Mamma Mia!” to come to town. When it finally does come, ticket prices are $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. 3. The fact that Ingrid cannot buy a ticket to “Mamma Mia!” is evidence of 4. Ingrid decides to try to buy a ticket from a scalper (a person who has purchased extra tickets at the box office with the intent to resell those tickets). If Ingrid finds someone who is willing to sell her a ticket for $70, she should
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