Feb13 - Clicker Questions 1) The supply of a good will be...

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Clicker Questions 1) The supply of a good will be more elastic, ceteris paribus, the lower the cost of storing the good for sale in the future. (If the price is low, you can hold onto inventory for the future, and if the price is high, you’re more likely to release inventory. More responsive to price change, therefore elastic.) 2) The market for paper is efficient if marginal benefit equal marginal cost. 3) Consumer surplus is measured by the area between the demand curve and the price line. 4) Producer surplus is measured by the area between the price line and the supply curve. The Special Interest Effect Most government regulation serves some special interest group (business, charity, consumer advocacy groups, government agencies, etc) in order to protect groups from competition. Special interest groups claim to promote the “public interest.” Very few consumers actually contribute to consumer advocacy groups, so their real funding comes from other “hidden” sources. The “hidden” sources are their real interest.
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This note was uploaded on 03/15/2012 for the course ECO 2023 taught by Professor Mccaleb during the Spring '08 term at FSU.

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Feb13 - Clicker Questions 1) The supply of a good will be...

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