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.

The figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from So to S₁. The amount of this tax per bucket of golf balls. IS QA. $2 OB. $2.50 O C. $4 OD. $1 OE. $3

What happens when there are changes to production other than price or STONER Choose all that apply A)Change supply B)Dont change supply C)Change quantity supply D)Shift supply

Suppose the market for a product is given by the following S+D functions. price 100 80 60 40 20 20 Demand 40 60 80 100 120 140 How much DWL does a $10 tax create? O a. zero Ob. 200 O c. 600 O d. 400 Supply

1. Consider a market where the demand is given by Q = 120 –P and supply is %3D given by QS = P. What are the consumer and producer surplus? Р. %3D a) Consumer surplus is 120 arnd producer surplus is 600. b) Consumer surplus is 600 and producer surplus is 1200. c) Consumer surplus is 240 and producer surplus is 300. d) Consumer surplus is 1200 and producer surplus is 240.

Only typed Answer

O The demand curve for a product is given by Qp = 400-20P and the supply curve for a product is given by Qs = 16P-32. O a. Illustrate the demand curve and the supply curve on the same graph. O b. Find the equilibrium price and quantity. O c. Find numerical values for the consumer surplus and the producer surplus. O d. Identify consumer surplus and producer surplus on your graph.

Using Supply and Demand to Analyze Markets-End of Chapter Problem Increases in demand generally result in increases in consumer surplus. However, this is not always the case. Of the following scenarios, which one is most likely to result in a decrease in consumer surplus? Supply is relatively elastic, and demand becomes highly inelastic when it increases. Supply and demand are both unit elastic and demand increases. Supply is inelastic, and demand becomes highly elastic when it increases. O Supply is relatively elastic, and demand becomes highly elastic when it increases.

A market's deadweight loss is calculated as: O the economic loss that a firm has when it is not producing its profit-maximizing output. O the price at equilibrium minus the price at actual quantity. the total economic surplus at the efficient quantity minus the total economic surplus at the actual quantity. the loss to consumers when a product malfunctions or fails to meet expectations.