Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 22, Problem 12DQ
To determine
The intent of freedom to farm act of 1996.
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3.30
3.00
2.70
2.40
2.10
1.80
1.50
1.20
0.90
0.60
0.30
50
100
150
200
250
300
350
400
O b. There will be a excess supply of 200 units
O c. The ceiling is non-binding
O d. There will be an excess supply of 100 units
Supply
Demand
Suppose that a price ceiling is set at $2.70. Which of the following is true?
O a. There will be a shortage of 200 units
Click Save and Submit to save and submit. Click Save All Answers to save all a
20
18
S
16
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8
D
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Quantity
Suppose that supply and demand at a market are represented by curves S and D at
the figure above (notice that the vertical axis grid has increments of $2) and then a
tax of $6 dollars per unit is imposed on buyers.
What is the tax burden on the sellers?
$8
$6
$4
$2
Price
Suppose the demand for a product is given by P = 30-3Q. Also, the supply is given by P = 10 + Q.
If a $4 per-unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax
will be
$4
$16
None of these
$24
O $8
Question 5
Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q.
If a $5 per-unit excise tax is levied on the buyers of a good, after the tax, consumer surplus is equal
to
O None of these
$16
$25
$24
1 pts
$2.50
Chapter 22 Solutions
Microeconomics
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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- Suppose that for home-owning families in the 32% tax bracket, the deductibility of mortgage payments and property taxes reduces the effective price of owner-occupied housing by about 20%. If the price elasticity of demand for housing is 1.2, the government subsidy will increase the quantity of owner-occupied housing demanded by about: 8% O 16.7% 24% O 32%arrow_forwardThe graph shows the market for tutoring at a university. Price (per hour of tutoring) $25 20 15 10 7.50 LO 5 2.50 S D 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If there is a price floor of $15, consumer surplus is, in numerals, $.arrow_forwardRefer to Figure 8-2. The per-unit burden of the tax on sellers is a. $3. b. $5. c. $2. d. $4. The vertical distance between points A and B represents a tax in the market. PRICE 12 11 10 9 8 07 (O 5 4 Figure 8-2 3 2 1 A B Supply Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITYarrow_forward
- Imagine that the demand curve for beer is given by P=9-Q and supply for beer is given by P=1+Q. What is the deadweight loss associated with a tax of $3 per unit? 12 O 2.25 O None of the above. O 6.25arrow_forwardQuestion 5: Combined state and federal taxes on gasoline average around 50 cents per gallon, and these taxes are statutorily levied on gasoline sellers. Because the demand for gasoline is relatively inelastic compared to the supply of gasoline: buyers likely do not bear much of the actual burden because it is statutorily levied on sellers who must submit the tax payments. sellers likely bear most of the actual burden of the tax through lower gasoline prices. O the net price received by sellers after they pay taxes likely falls by almost the full amount of the tax. O buyers likely bear most of the actual burden of the tax through higher gasoline prices.arrow_forwardWhat is the deadweight loss resulting in a $10 price ceiling on this market? 50 Supply 45 40 35 30 20 15 10 Demand O 10 20 30 40 50 60 70 80 90 100 Quantity of Cement (Bags) | 20 bags of cement O $150 O 40 bags of cement $0 ) There will be no deadweight loss since consumers are getting cheaper products O none of these answers are accurate $250 O $100 Price per bag ($)arrow_forward
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- 2.40 2.00 1.60 1.20 0.80 0.40 0 600 O1200 12000 13000 14000 15000 Supply Demand 16000 If a price ceiling of $0.80 is imposed on this market, what is the dead weight loss? O 400 800arrow_forwardQuestion 29 500 $3.76 $3.40 $3.30 $3 00 10 12 14 16 18 20 Suppose that a tax of $0.45 is imposed on this market, what will be the new price suppliers receive? O a. 3.75 O b.3.00 OC. 3.30 O d.3.40arrow_forward20 18 16 14 12 10 8 D 4 2 0 1 2 3 4 5 6 7 8 9. 10 11 12 Quantity Suppose that supply and demand at a market are represented by curves S and D at the figure above (notice that the vertical axis grid has increments of $2) and then a tax of $6 dollars per unit is imposed on buyers. What is the new equilibrium market price? $12 $16 $8 $10 Price LOarrow_forward
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