Scenario: the Table Below Shows the Reservation Values of Ten

question 194

Multiple Choice

Scenario: The table below shows the reservation values of ten buyers and a seller for a loaf of bread. Each buyer would buy at most one loaf and the seller can make up to ten loaves. Initially trades happen under the market mechanism with each agent making a decision according to the market price and his or her own reservation value. Then the government imposes a price ceiling of $1.00 per unit.

-Refer to the scenario above.Suppose that,after the price ceiling is imposed,the seller uses a lower quality flour that reduces his marginal cost by $0.50 for each loaf.Buyers suspect that the quality may be lower,and their reservation value falls by $0.25.At the legal price,there will be ________.

• A) a shortage of 1 loaf
• B) a shortage of 2 loaves
• C) a surplus of 1 loaf
• D) a surplus of 2 loaves

Understand the criticisms of Gilligan's theory and its place within the broader context of ethical studies.

Distinguish between ethical theories focused on justice and those focused on care.

Realize the implications of considering relationships and connectedness in ethical decision-making.

Understand John Fuller’s pyramid of concepts in peacemaking criminology.

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Definitions:

Personalized Sweaters

Custom-made sweaters tailored to individual preferences regarding design, color, and often with personal messages or images.

Fixed Cost

Expenses that do not change in the short term, regardless of the level of output or sales, such as rent, salaries, and loan payments.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and price-setting ability.

Short Run

A period during which at least one factor of production is considered fixed, limiting the capacity to adjust production levels.