b. Which of the following statements is true? O Producing more than equilibrium leaves unrealized producer and consumer surplus, while producing less than equilibrium reduces producer surplus. Producing more or less than equilibrium results in negative profits, which is inefficient. O Producing less than equilibrium leaves unrealized producer and consumer surplus, while producing more than equilibrium increases consumer and producer surplus. O Producing less than equilibrium leaves unrealized producer and consumer surplus, while producing more than equilibrium reduces total surplus.

8

Help

QUESTION 10 A decrease in price will increase consumer welfare or consumer surplus due to O a. Old consumers paying a higher price, and new consumers entering into the market. O b. Old consumers paying a lower price, and new consumers entering into the market. O c. New consumers paying a higher price, and old consumers leaving the market. d. New consumers paying a lower price, and old consumers leaving the market.

Consider a perfectly competitive market with our usual downward sloping demand and upward sloping supply curves. The market has a $2 per-unit tax that consumers pay. This tax is decreased to a $1 per-unit tax. Which of the statement is TRUE about the market equilibrium with the lower $1 tax. O Consumer surplus decreases because market price rises. O Tax revenues increase. O Tax revenues decrease. O Producer surplus increases.

8. Consumer and Producer Surplus Suppose Charles is the only seller in the market for bottled water and Yakov is the only buyer. The following lists show the value Yakov places on a bottle of water and the cost Charles incurs to produce each bottle of water: Yakov's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Charles's Costs Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7 The following table shows their respective supply and demand schedules: Price Quantity Demanded Quantity Supplied $1 or less 4 о $1 to $3 3 1 $3 to $5 2 2 $5 to $7 1 3 More than $7 0 4 Use Charles's supply schedule and Yakov's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer…

need correct answer .absuletly upvote !!1

Gas-powered hedge trimmers Price (P) S D Quantity (Q) The cost of labor rises in this industry. At the same time consumer tastes shift away from this product in favor of quieter or less-polluting alternatives. What is likely to happen in this market? Select one: O a. Price may rise or fall; Quantity will fall. O b. Price may rise or fall; Quantity will rise. O c. Price will rise; Quantity may rise or fall. O d. Price will fall; Quantity may rise or fall. Clear my choice Check

17) JA perfectly competitive market has a market price of $10 and a quantity of 50 is traded. When the government imposes a $3 per-unit tax on the market, market price increases by 10%. Which of the statements below could be true based on this information. A Consumers pay the tax and supply is relatively more inelastic than demand. B Consumers pay the tax and demand is relatively more inelastic than supply. C Producers pay the tax and supply is relatively more inelastic than demand. D Producers pay the tax and demand is relatively more inelastic than supply. E Producers pay the tax and the elasticity of supply is the same as demand (in absolute terms).

Which of the following statements is correct? Deadweight loss is: Select one: O a. Borne entirely by consumers. O b. The society's loss in total surplus resulting from inefficient level of production. O c. The loss in producer surplus resulting from inefficient level of consumption. O d. Borne entirely by producers. nstitute of Business & Management trading