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A) Dead weight loss (B) An increase in demand (C) An increase in supply (D) A price ceiling (E) A price floor 73. Dead weight loss refers to (A) the lost benefit to society caused by the movement away from the market equilibrium (B) the gained benefit to suppliers caused by the increase in the market equilibrium (C) the incremental benefit or loss when the consumer increases consumption by one additional unit (marginal utility) (D) the legal maximum price above which a product cannot be sold (price ceiling) (E) the legal minimum price below which a product cannot be sold (price floor) 74.

They browse the aisles of a toy store and come across two dolls. Both dolls are essentially the same in appearance, except Doll B is $5 more than Doll A. Deirdre ends up buying the more expensive doll because her daughter loves the designs on the box it comes in. This scenario illustrates (A) the power of a monopolistic competitive firm using advertising (B) MC = MB (C) price discrimination (D) collusive pricing (E) all of the above Use the following graph to answer question 151. 151. The preceding graph represents a short-run monopolistic equilibrium.

All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-177450-5 MHID: 0-07-177450-5 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-177449-9, MHID: 0-07-177449-1. All trademarks are trademarks of their respective owners.

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