- Module 9.1: Suppose that the supply and demand for taxi rides is given by Figur...
- Module 9.2: Again replicate the graph from Figure 9.1. Suppose that the quota i...
- Module 9.3: Refer to the graph provided for Questions 13. If the government est...
- Module 9.4: Quotas lead to which of the following? I. inefficiency due to misse...
- Module 9.5: Which of the following would decrease the effect a quota has on the...
Solutions for Chapter Module 9: Supply and Demand: Quantity Controls
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the limit on the consumption bundles that a consumer can afford
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
a decrease in investment that results from government borrowing
the quantity supplied and the quantity demanded at the equilibrium price
input costs that require an outlay of money by the firm
the percentage change in the price index from the preceding period
spending on capital equipment, inventories, and structures, including household purchases of new housing
law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
the regular pattern of income variation over a person’s life
isk that affects all companies in the stock market
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
an economy that interacts freely with other economies around the world
a person for whom another person, called the agent, is performing some act
rivalry in consumption
the property of a good whereby one person’s use diminishes other people’s use
the resources wasted when inflation encourages people to reduce their money holdings
an action taken by an informed party to reveal private information to an uninformed party
a situation in which quantity supplied is greater than quantity demanded
total revenue (for a firm)
the amount a firm receives for the sale of its output
value of the marginal product
the marginal product of an input times the price of the output
the price of a good that prevails in the world market for that good