Question

40 s $2.00 D $1.50 Price (per gallon) 8 00:53:48 $1.00 0 20 27 28 30 35 Millions of Gallons of Milk Per Week Refer to the above diagram for the milk market. If the price were $2 per gallon, then there would be a

Answer 1

Ans. 40. B) surplus of 10 million gallons.

If the price is $2 per gallon, then Supply of milk is greater than the demand for milk and then there would be a surplus of milk.

Surplus = Supply of milk - demand for milk

Surplus = 30 million gallons - 20 million gallons

Surplus = 10 million gallons

Ans. 41. A) use the tools of economics to analyze decision making, politics, and elections in the public sectors.

Public choice economists study about the public choice theory and use the economic tools to solve the traditional problem of political science like decision making of agents in politics ( such as voter, politicians, bureaucrats).