Examlex
The inverse demand function for grapefruit is defined by the equation p = 122 - 4q, where q is the number of units sold.The inverse supply function is defined by p = 8 + 2q.A tax of $12 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to
Optimal Amount
The quantity of production or consumption that maximizes efficiency or utility under given constraints.
Median Voter's Preference
A concept in political economy suggesting the outcome of a majority-vote decision process will most closely align with the preferences of the median voter.
Vote With Their Feet
The concept that people show their preferences or dissatisfaction with a situation by leaving an area or opting out of a system.
Free-Rider Problem
A situation where individuals consume more than their fair share of a public resource, or shoulder less of the cost of its production, benefiting from a good without properly paying for it.
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