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 Market: SUVS (sports utility vehicles) The Market price: $50,000. The Scenario: A tax of $2,000 is placed on the producers of each new SUV produced because they block visibility for others on the freeway. Assume a standard upward-sloping supply and downward-sloping demand in this market. What price do you expect after this tax of $2.000 is placed on SUV producers in this market? O Between $50,000 and $52.000. O Less than $50,000. $52,000 exactly. $50,000 exactly. O More than $52,000.

A shift to the LEFT of the demand curve (due a decrease in in expected price of the good) results in Oa No change in producer surplus Ob. Increase in the consumer surplus OC. A negative consumer surplus Od. Decrease in the consumer surplus

Consider a market in which supply and demand are both unit elastic at the equilibrium (equals 1 in absolute value). Which of the following statements is true? a. Consumer and producer surplus are equal. O b. None of the other answers are correct. O c. Consumer surplus is larger than producer surplus. O d. Producer surplus is larger than consumer surplus.

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

Currently the price for wheat is $5 per bushel. To help the farmers, the government promises that it will buy any wheat that farmers can't sell at a price of $6 per bushel. Select one. O a This will decrease producer surplus. O b This is an example of quota. O c This will decrease consumer surplus. O d This is an example of price ceiling

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

I need the answer as soon as possible

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.