Out of This World is the only private rocket ride in the nation. The table sets out the demand schedule for rides and the cost schedule for producing the private rocket ride. At the market equilibrium, no children under 10 years old ride the private rocket. Out of This World offers children a discount of 50 percent, which brings in more families. This discount consumer surplus and producer surplus. O A. increases; decreases O B. decreases; decreases O C. increases; increases O D. decreases; increases Out of This World is efficient Price (dollars per ride) 40 36 32 28 24 20 16 12 8 Quantity (rides per day) 0 100 200 300 400 500 600 700 800 Total cost (dollars per day) 1000 1800 2600 3400 4200 5000 5800 6600 7400

Which one of the following statement is incorrect? O A. The difference between the lowest price at which producers are willing to supply a product and the price they actually receive is known as the producer surplus O B. The producer surplus is depicted by the area below the demand curve and above the market price. O C. The value between what consumers pay and the maximum value that they are willing to pay for a product is known as the consumer surplus O D. To determine consumer surplus, one must have knowledge of the market price of a particular product

Refer to the graph to the right. After the government imposes a price of $3.50 in this market, area A represents O A. total economic surplus. O B. the producer surplus transferred to consumers. OC. the consumer surplus transferred to producers. O D. a deadweight loss. $3.50 A 3.00 2.0 Quantity (billions of bushels per year) 2.2 1.8 Price (dollars per bushel) D.

P₁ 4 91 7 8 9 O A. areas 1, 2, 5 and 6 OB. areas 1 and 2 OC. area 2 OD. area 3 O E. areas 5 and 6 Qo Quantity Supply Demand FIGURE 5-6 Refer to Figure 5-6. The market for good X is in equilibrium at Po and Qo. Now suppose the government imposes a price ceiling at P₁. The redistribution of surplus from producers to the consumer is represented by ...

Suppose that market supply and demand for Cola are linear and continuous. At competitive equilibrium, the price of Cola is $9.09, with 10 people each buying half a litre in quantity. The government subsidises the consumption of Cola by $2.7 per litre, and in doing so, leads the market to a new equilibrium price of $7.74 and quantity of 17 litres.What is the deadweight loss of this policy?O a. $9.09O b. $8.50O c. $32.40O d. $16.20 Type out the correct answer and give correct explanation of it within 40 50 minutes. Will give upvote only for the correct answer. Thank you

$4.00 $3.50- $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 5 10 15 20 25 30 Quantity A price floor set at a price of $1.00 will result in O no change in the market outcomes. a surplus of 20 units. a surplus of 10 units. a shortage of 20 units. a shortage of 10 units. Price O O Supply Demand 35 40

Dollars per unit $20- S $15 e $10 $6 $2 2,000 1,000 1,200 Quantity per period Use the graph above. If the price in the market is $10, what is the consumer surplus in the market? O None of the answers is correct O $40,000 O2,000 units O $10,000 Consumer surplus Producer surplus

The government is worried about high rates of cigarette smoking and so it's considering implementing a cigarettes tax. The government knows that the demand for cigarettes is very inelastic, and the supply of cigarettes is perfectly elastic. Which of the following statements are true? (Select all that apply.) O a. It doesn't matter how the tax is implemented. O b. There are positive externalities associated with smoking. O c. Smoking will decrease only slightly in the short-run. O d. Regardless of how the tax is implemented, consumers will pay the full amount of the tax. O e. The government will collect more revenue if the tax is on the suppliers. O f. Consumers and suppliers will split the burden of the tax. O g. Smoking will decrease more if the tax is the on the suppliers. O h. A tax on cigarettes is one way to make smokers internalize the cost of the externalities associated with smoking. O i. Smoking will decrease more in the long-run than in the short-run. O j. Smoking will…

Table 5 Price $0 $5 $10 $15 $20 $25 Quantity Quantity Demanded Supplied 250 0 200 75 150 150 100 225 50 300 0 375 Refer to Table 5. Which of the following statements is correct? Select one: O a. A price floor set at $20 will not be binding. O b. A price floor set at $20 will be binding and will result in a surplus of 100 units. O c. A price floor set at $20 will be binding and will result in a surplus of 250 units. O d. A price floor set at $20 will be binding and will result in a surplus of 50 units.

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