The Demand Curve for a Good Is Given by P

question 4

Multiple Choice

The demand curve for a good is given by p = 160 - 6q, where p is the price and q is the quantity of the good. Suppose that the number of consumers in the economy doubles; a "clone" of each consumer, who has exactly the same demand curve as the original consumer, appears. The demand curve for the doubled economy is described by

• A) p = 320 - 6q.
• B) p = 320 - 12q.
• C) p = 160 - 12q.
• D) p = 160 - 3q.
• E) p = 80 - 3q.

Explain the concept of Pareto improvements and their limitations in real-world trade and policy.

Assess the efficiency of market outcomes in the presence of public goods and externalities.

Analyze labor supply decisions in the context of trade-offs between market wage and leisure.

Understand the concept of Pareto efficiency and its application in evaluating government policies and market exchanges.

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Definitions:

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