lucy, micro final
figure 7-29 which of the following statements is correct
At Q4 the value to buyers is less than the cost to sellers
Figure 7-29: Which of the following statements is correct?
At Q4, the value to buyers is less than the cost to sellers
Figure: Clorox Wipes- An increase in the price of Clorox wipes be represented by a movement from
B to A
figure clorox wipes an increase in the price of clorox wipes be represented by movement from
B to A
Figure 4-2: What area represents the increase in producer surplus when the market rises from P1 to P2?
A+B
If the market price is less than P3 and greater than P2, in the short run, the perfectly competitive from will earn
negative economic profit but continue to produce output
Max rescues dogs from her local animal shelter. When Max's income rises by 7 percent, his quantity demanded of off-brand dog biscuits decreases by 12 percent. For Max, the income elasticity of demand for dog biscuits is
negative, and dog biscuits are an inferior good
table 4-4. if a minimum wage of $9.50 is mandated, there will be a
neither a shortage nor a surplus will result, because this minimum wage will not be binding
Figure 2-1 is (are) efficient with current resources
only point B
figure 2-1 is (are) possible to produce with current resources
only points A and B
Figure 6-1: A binding price is shown in
panel (b) only
Figure 3-7: What panel describes what happens in this market when the price of helicopter rides fall?
panel (d)
If the price in the market were $20, there would be a
shortage of 30 units
using the figure above: which of the following statements is NOT correct
supply curve C is unit elastic
figure 6-21 relative to the tax on sellers, the tax on buyers would result in
the same amount of tax revenue for the government
This firm experiences diminishing marginal product labor with the addition of which worker?
the sixth worker
figure chase rice concert tickets if the price is $10
there is a shortage of 600 tickets
for a firm operating in a competitive industry, which of the following statements is NOT correct
total revenue is constant
which of the following statements is false
trade offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale
If the market price is P3, in the short run, the perfectly competitive from will earn
zero economic profit
if the market price is P3, in the short run, the perfectly competitive firm will earn
zero economic profit
Figure 5-3: The demand curve representing the demand for a luxury good with several close substitutes is
C
Figure 15-6: What is the monopolist's profit?
None of the above
Figure Clorox Wipes: Acquiring new machinery that could produce Clorox wipes more quickly would be represented by a movement from
S1 to S2
figure clorox wipes a decrease in the price of bleach (an input for Clorox wipes) would be represented by a movement from
S1 to S2
For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two countries?
Switzerland has the comparative advantage in watches
Assume that Mexico and the United States each has 2400 hours avaliable. Applying the principle of comparative advantage, which of the following is true?
The U.S. should export limos, and Mexico should export jets.
Figure 15-9: How does the monopolists quantity compare to the socially efficient quantity?
The monopolist produces 340 units less than the socially efficient quantity
Table 6-8: What is the most destructive feature of the supply curve?
The supply curve is perfectly inelastic
For a firm operating in a competitive industry, which of the following statements is not correct?
Total revenue is constant
table 4-4 what are the new free market equilibrium hourly wage and the new equilibrium quantity of labor
W= $11.50; Q=610,000
Table 4-4: What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
W=$8.50, Q= 550,000
figure 2-4 a movement from ____ is the result of advancements in both plastics and food products productions technology
X to Y
Figure 2-4: A movement from _____ is the result of advancements in plastic production technology
Y to Z
Figure 4-8: As a result of the tax, is there a loss in consumer surplus?
Yes, because consumers pay a price above the economically efficient price
Rent-control laws dictate
a maximum rent that landlords may charge tenants.
If a increase in income leads to an increase in the demand for sushi, then sushi is
a normal good
If an increase in income leads to a increase in the demand for sushi, then sushi is
a normal good
use the above figure to answer the following question. Which of the following statements is NOT correct
a price floor set at$9 would result in a shortage
In order to reach point L, the economy would have to
acquire more resources or experience a technological change
When the government taxes a good or service, it
affects the market equilibrium for that good or service
in the long run, the firm can operate on which of the following average total cost curves
all of the above are correct
Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except
an increase in the price of gasoline
If an increase in income leads to a decrease in the demand for sushi, then sushi is
an inferior good
A perfectly elastic demand implies that
any rise in price above that represented by the demand curve will result in a quantity demanded of zero.
Figure 15-2: If the firm's average total cost curve is ATC2, the firm will
break even
Tommy likes to consume lemonade with his sweet tea (as an "Arnold Palmer"). For Tommy, lemonade and sweet tea are
complements, and his cross-price elasticity of demand between the two goods in negative
Table 2-1: Love faces ___ opportunity costs in the production of cakes and roast chicken
constant
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?
consume a combination of goods that lies outside its own production possibilities frontier
Figure 5-11: A decrease in price from $20 to $10 lead to a
decrease in total revenue of $120, so the price elasticity is less than 1 in the price range
Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpkins. If she plants 2 bags, she gets 800 pumpkins. If she plants 3 bags, she gets 900 pumpkins. A bag of seeds costs $100, and seeds are her only cost. Joan's production function exhibits
decreasing marginal product
If the market price is $6.30, in the long run,
firms will neither exit nor enter the market.
in a competitive market the current price is $5. the typical firm in the market has ATC= $5.50 and AVC= $4.50
in the short run firms will continue to operate but in the long run firms will leave the market
Figure 5-11: If price increases from $10 to $20, total revenue will
increase by $120, so demand must be inelastic in this price range
Assume Nadia's face coverings only produces masks and gaiters. A combination of 12 masks and 12 gaitors would appear
inside Nadia's production possibilities frontier
What us the fixed cost per bowl (AFC) when 2 workers are hired?
$0.29 per bowl
What is the cost per bowl (ATC) when 2 workers are hired?
$0.53 per bowl
what is the cost per bowl (ATC) when 2 workers are hired
$0.53 per bowl
Suppose the vertical distance between the points A and B represents the tax in the market. The price that the sellers receive per unit after the tax is imposed is
$10
use the above figure to answer the following question. suppose the vertical distance between points A and B represents the tax in the market. The price that the sellers recieve per unit after the tax is imposed is
$10
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
$10,000
Midpoint Method: Using the midpoint method in which range is demand most elastic?
$12 to $15
use the table above to answer the following question: using the midpoint method, in which range is demand most elastic
$12 to $15
The table represents a demand curve faced b y a restaurant in a competitive market. For this firm, the price is
$13
the table represents a demand curve faced by a restaurant in a competitive market. for this firm the price is
$13
Figure 15-6: What us the total revenue for the monopolists?
$1488
what is the total revenue for the monopolist
$1488
If the market price is $10, what is the competitive firm's profit?
$15
Figure: Welfare of Taxes- What will be the deadweight loss due to tax?
$1500
Figure: Tax of $4- A tax of $4 would increase the price buyers pay by
$2
Use the figure above to answer the following question. A tax of $4 would decrease the price the sellers receive by
$2
Suppose the government imposes a tax of $6 per unit. What is the consumer surplus with the tax?
$20
Figure 15-6: what is the socially efficient price and quantity combination?
$22, 83 units
suppose the government imposes a tax of $3 per unit. what is producer surplus with the tax
$22.50
Assume the demand curve and supply curve are straight line. What is the producer surplus at equilibrium?
$24
use the above figure to answer the following question. suppose the vertical distance between points A and B represents the tax in the market. the price that the buyers pay per unit after the max is imposed is
$24
use the above table to answer the following question. assume the demand curve and supply curve are straight lines. what is producer surplus at equilibrium
$24
Figure 15-6: What price/quantity combination will the monopolists use to maximize profit?
$24, 62 units
use the above figure to answer the following question. what would be the new quantity produced and sold with a tax of $6
$300 units
how much tax revenue will the government collect?
$3000
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. An economists would calculate Ziva's total cost of farming to equal
$380
Use the figure above to answer the following question. What is producer surplus at equilibrium?
$400
Suppose the government imposes a tax of $3 per unit. How much tax revenue will the government collect?
$45
Use the above graph to answer the following question. Suppose the government imposes a tax of $3 per unit. How much tax revenue will the government collect?
$45
Table: Welfare Economics - What is consumer surplus at equilibrium?
$48
What is the firm's fixed cost?
$50
Midpoint Method: Use the table above to answer the following question. Using the midpoint method, in which range is demand unit elastic?
$6 to $9
Assume that Mexico and the United States each has 2400 hours avaliable. The total output of limos increased by
16
Assume that Mexico and the united states each has 2400 hours available.... total output of limos increased by
16
assume that mexico and the united states each has 2400 hours available... as a result, the total output of limos increased by
16
table 2-4 what is gabe's opportunity cost of cultivating a garden
2 lawns
A tax of $4 would decrease the quantity produced and sold in this market by
2 units
Use the above graph to answer the following question. A tax of $4 would decrease the quantity sold in this market by
2 units
Midpoint Method: What is the absolute value of the price elasticity of demand between $9 and $12?
2.33
If the law of supply applies to this good, then Q1 could be
200
What is the output when 5 workers are hired?
225 units
What is the total output when 5 workers are hired?
225 units
what is the total output when 5 workers are hired
225 units
If the firm can sell its output for $1 per unit, what is the profit maximizing level of output?
230 units
If the firm can sell its output for $1 per unit, what is the profit-maximizing level of output?
230 units
if the firm can sell its output for $1 per unit, what is the profit-maximizing level of output
230 units
Figure 2-6: If the economy is currently producing at point B, what is the opportunity cost of moving to point C?
26 thousand forks
figure 2-6 if the economy is currently producing at point B , what is the opportunity cost of moving point C
26 thousand forks
use the above graph to answer the following question. if this economy uses all of it's resources to produce steaks, whats the maximum amount of steaks it can possibly produce
40 steaks
Assume that Jordan and Christian each has 180 minutes available. If each producer divides his time equally between the production of stuffed animals and pinatas, then the total combined production between the two producers is
48 stuffed animals and 24 pinatas
Assume that Jordan and Christian each has 180 minutes available. If each producer divides his time equally between the production of stuffed animals and piñatas, then the total combined production between the two producers is
48 stuffed animals and 24 piñatas
Suppose Nicole can record two makeup tutorials per hour or she can record four dance tutorials per hour. Angela can record one makeup tutorial per hour or she can record three dance tutorials per hour. Which of the following is true? A. Nicole has the absolute advantage in makeup tutorials. B. Nicole has the comparative advantage over Angela in makeup tutorials. C. Angela has the comparative advantage over Nicole in dance tutorials.
A, B, and C are all correct
Suppose Nicole can record two makeup tutorials per hour or she can record four dance tutorials per hour. Angela can record one makeup tutorial per hour or she can record three dance tutorials per hour. Which of the following is true? A. Nicole has the absolute advantage in makeup tutorials. B. Nicole has the comparative advantage over Angela in makeup tutorials. C. Angela has the comparative advantage over Nicole in dance tutorials.
A, B, and C are all correct.
Figure 2-1: ____ is (are) unattainable with current resources.
C
Who has the absolute advantage in the production of piñatas?
Christian
who has the absolute advantage in the production of pinatas
Christian
Use the graph below to answer the following question. As the price falls from Pa to Pb, which demand curve represents the most elastic demand?
D1
Use the graph below to answer the following question. as the price falls from Pa to Pb, which demand curve represents the most elastic demand
D1
figure clorox wipes a decrease in the price of a complement (trashbags) would be represents by movement from
D1 to D2
Figure: Clorox Wipes- A decrease in the price of the substitute (lysol wipes) would be represented by a movement from
D2 to D1
Figure: Clorox Wipes- a decrease in income would be represented by a movement from
D2 to D1
Table 7-2: If the price of vanilla coke is $6.90 who will purchase the good?
David and Laura
Table 2-8: Which of the following statements is true?
Delilah has comparative advantage in making benches and Ellie in making statues.
Assume the government imposes a tax of P3-P1. What area represents producer surplus when the good is taxed?
F
Use the above graph to answer the following question. Assume the government imposes a tax of P3-P1. What area represents producer surplus when this good is taxed?
F
Figure: 2-9 : Which country has a comparative advantage in the production of popsicles?
Greenland
Figure 2-9: Which country has the comparative advantage in the production of snow cones?
Iceland
figure 2-9 which country has a comparative advantage in the production of snow cones
Iceland
In a competitive market the current price is $5. The typical from in the market has ATC= $5.50 and AVC= $4.50
In the short run firms will continue to operate, but in the long run firms will leave the market
assume the government imposes a tax of P'-P" what is the total surplus in the market with the tax
J+K+L+M
Who has the absolute advantage in the production of stuffed animals?
Jordan
Table 2-4: Which of the following statements is true?
Lucy has a comparative advantage in garden cultivation and Gabe in lawn mowing.
what price/quantity combination will the monopolist use?
P1Q1
Figure: Welfare Economics- What is the most efficient price-quantity combination?
P2;Q1
Table 15-1: What is the firm's profit-maximizing output and what is the price charged to sell this output?
P=$70, Q= 13
Suppose the state of Illinois passes a law that bans smoking in restaurants. As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there. Which of the following principles does this best illustrate?
People respond to incentives
Figure 12-9: At price P2, the firm would produce
Q2 units
refer to figure 12-9. at price P2, the firm wold produce
Q2 units
Figure 12-9: At price P4, the firm would produce
Q4 units
Assume that Mexico and the united states each has 2400 hours available. Applying the principles of comparative advantage, which of the following is true?
The U.S. should export limos, and Mexico should export jets.
Figure 4-10: Which of the following statements best describes the impact of the tax?
The consumer will bear a smaller share of the tax burden if the demand curve is D1
After much consideration, you have chosen Ireland over Spain as your Spring Break destination this year. However, the deadline for your final destination is still months away and you may reverse your decision. Which of the following events would prompt you to reverse this decision?
The marginal benefit of going to Spain increases
Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph?
The supply curve for cases of beer would shift up by $1
Suppose that in Canada the government places a $1500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1500. How would the imposition of the tax on buyers be illustrated in a graph?
The tax will shift the demand curve down by $1500.
Figure: Hunter Hayes Concert Tickets- At a price of $15
There is a surplus of 4 tickets
Figure 4-7: Which of the following is true regarding how this price ceiling will affect the quantity supplied, quantity demanded, and quantity exchanged?
This price ceiling will have no effect on the market outcome
Figure 4-8: As a result of the tax, is there a loss in the consumer surplus?
Yes, because consumers pay a price above the economically efficient price
refer to figure 12-10. at the profit- maximizing output level, the firm earns
a profit of $2,700
Figure 12-10: At the proft-maximizing output level, the firm earns
a profit of $2700
When the government taxes a good or a service, it
affects the market equilibrium for that good or service.
when the government taxes a good or service, it
affects the market equilibrium for that good or service.
refer to table 7-2 which of the following is not true
all of the above are correct
You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles, yours would
be positive, and your roommate's would be negative
Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade could
benefit both Jayson and Regan
Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade could
benefit both jayson and regan
Suppose a tax of $2 per unit is imposed on this market. The new price buyers will pay will be
between $5 and $7
In the above figure, the long-run average cost curve exhibits constant returns to scale
between 10 and 20 units per hour
in the above figure, the long run average cost curve exhibits constant returns to scale
between 10 and 20 units per hour
In the above figure, the long-run average cost curve exhibits diseconomies of scale
between 20 and 25 units per hour
Use the figure above to answer the following question. In the market, a minimum wage of $7.25 is
binding and creates unemployment
use the above figure to answer the following question. in this market, a minimum wage of $7.25 is
binding and creates unemployment (a labor surplus or a shortage of jobs)
Figure 6-17: A Government-imposed price of $12 in this market is an example of a
binding price ceiling that creates a shortage
figure 6-1 the price ceiling shown in panel (a)
both a) and b) are correct
suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes, is inelastic, and the supply of cigarettes is elastic. if a tax were levied on the the sellers of both of these commodities, we would expect that the burden of
both taxes would fall more heavily on the buyers than on the sellers
Figure 6-2: The price ceiling
causes a shortage of 85 units
Makeupville faces __________ opportunity costs in the production of mascara and eyeliner.
changing
figure total surplus use the above figure to answer the following question. if the government imposes a price ceiling of $50 on this good, then total surplus will
decrease
Table 3-2: If the price of the caviar rises from $65 to $75, the market quantity demanded would
decrease by 36 oz
Steak and chicken are substitutes. A sharp reduction in the supply of steak would
decrease consumer surplus in the for steak and increase producer surplus in the market for chicken
Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpkins. If she plants 2 bags, she gets 800 pumpkins. If she plants 3 bags, she gets 900 pumpkins. A bag of seeds costs $100, and seeds are her only cost.
decreasing marginal product
Suppose the government has imposed a price floor on the market for soybeans, which of the following events could transform the price floor from one that is not binding into one that is binding
farmers use improved, drought-resistant seeds, which lowers the cost of growing soybeans
if the market price is $6.30, in the long run
firms will neither exit nor enter the market.
table 3-2 if the price of caviar falls from $45 to $35, the market quantity demanded would
increase by 70 oz
studies have shown that drinking one glass of red wine per day may help prevent heart disease... tn the market for red wine, these two developments would
increase demand and increase supply, resulting in an increase in the equilibrium price of red wine
table 2-4 shows the output per day of two gardeners, Gabe and lucy. they can either devote their time to mowing lawns or cultivating gardens.
lucy has a comparative advantage in garden cultivating and gabe in lawn mowing
Figure 15-2: If the firms average total cost curve is ATC!, the firm will
make a profit
refer to figure 15-2. if the firm's average total cost curve is ATC 1 the firm will
make a profit
If the market price is less than P2, in the short run, the perfectly competitive from will earn
negative economic profit and shut down
if the market price is less than P3 and greater than P2, in the short run, the perfectly competitive firm will earn
negative economic profit but continue to produce output
if the market price is less than P2 in the short run, the perfectly competitive firm will earn
negative economic, profit and shut down
Suppose that when the price of good X increases from $800 to $850... We can conclude that the cross-price elasticity of demand ___ and goods X and Y are ____
negative, complements
suppose that when the price of good X increases from $800 to $850. the quantity demanded o goods Y decreases from 70 to 65. we can conclude that the cross-price elasticity of demand is ______ and goods X and Y are ______
negative; complements
Table 4-4: If a minimum wage of $9.50 is mandated, there will be a
neither a shortage nor surplus will result, because this minimum wage will not be binding
If the market price is $8, in the long run
new firms will enter the market
Use the above figure to answer the following question. In this market, a minimum wage of $2.75 is
nonbinding and creates neither a labor shortage or unemployment
table 2-1 assume love's kitchen only produces cakes and roast chicken. a combination of 60 cakes and 50 roast chickens would appear
outside love's production possibilities frontier
Assume Nadia's face coverings only produces masks and gaiters. A combination of 18 masks and 18 gaiters would appear
outside nadia's production possibilites frontier
figure 3-7 assume that the graphs in this figure represent the demand and supply curves for limo rides..... what panel describes what happens in this market when the price of helicopter rides fall
panel D
While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that
people face tradeoffs
Suppose the U.S. government encouraged new teachers to take jobs in underperforming schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying the economic idea that
people respond to economic incentives
Suppose the U.S. government encouraged new teachers to take jobs in underperforming schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying the economic idea that
people respond to incentives
Sophia is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that
people trade faceoffs
If firms do not increase their quantity supplied when price changes, then supply is
perfectly inelastic
The average total cost curves for plants A,B, C, and D are shown. Which plant is the best to use to produce 60 units per day?
plant B
Due to a fear of increases in produce prices, and the fear of contracting COVID-19 with a trip to the grocery store, many families started gardens this past spring. Starting a garden requires the purchase of seeds (for example: tomato seeds). As a result of this change in consumer's expectations/tastes, what happened to producer surplus in the market for tomato seeds? (Hint: draw a supply and demand diagram to help you).
producer surplus increases
total surplus in a market will increase when the government
remove a binding price ceiling from the market
Total surplus in a market will increase when the government
removed a binding price ceiling from that market
the phenomenon of scarcity stems from the fact that
resources are limited
The overriding reason why households and societies face many decisions is that...
resources are scarce
if the price in the market were $20, there would be a
shortage of 30 units
Figure: Total Surplus- If the government imposes a price ceiling of $130 on this good, the the total surplus will
stay the same
Figure: Total Surplus- If the government imposes a price ceiling of $130 on thus good, then total surplus will
stay the same
For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two countries?
switzerland has the comparative advantage in watches
assume that mexico and the united states each has 2400 hours available... applying the principle of comparative advantage, which of the following is true
the US should export limos, and Mexico should export jets
A rational decision-maker takes an action if and only if
the marginal benefit of the action exceeds the marginal cost of the action
a rational decision maker takes action if and only if
the marginal benefit of the action exceeds the marginal cost of the action
how does the monopolist's quantity compare to the socially efficient quantity
the monopolist produces 340 units less than the socially efficient quantity
Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,
the price of tennis balls does not change
Figure 4-9: Which of the following statements best describes the impact of the tax? For demand curve D1
the producer bears a greater share of the tax burden if the supply curve is s2
Figure 4-4: Assume that this is a competitive market. If the price of pecans is $9
the quantity supplied is greater than the economically efficient quantity
figure 4-4. the figure above represents the market for pecans. assume that this is a competitive market. if the price of pecans is $9
the quantity supplied is greater than the economically efficient quantity
suppose that in canada the government places a $1,500 tax on the buyers of new snowmobiles. after the purchase of a new snowmobile, a buyer must pay the government $1,500. how would the imposition of the tax on buyers be illustrated in a graph
the tax will shift the demand curve down by $1,500
Suppose that gasoline prices increase dramatically this month. tammy commutes 100 miles to work each weekday. Over the next few months, tammy drives less on the weekends to try to save money. Within the year, she sells her home and purchases one only 10 miles from her place of employment. These examples illustrate the importance of
the time horizon in determining price elasticity
Suppose that gasoline prices increase dramatically this month. Tammy commutes 100 miles to work each weekday. Over the next few months, Tammy drives less on the weekends to try to save money. Within the year, she sells her home and purchases one only 10 miles from her place of employment. These examples illustrate the importance of
the time horizon in determining price elasticity of demand
Figure: Chase Rice Tickets: If the price is $25
there is a surplus of 300 tickets
Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
$0
Table 12-1: What is the fixed cost of production?
$1000
If the table represents a demand curve faced by a restaurant in a competitive market. For this firm the price is
$13
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business. Julia's explicit costs are?
$15000
As the diagram is drawn, what is the size of the tax in this market? A tax is placed on this good
$2
Suppose that for a particular firm... What is the average total cost of production when the firm hires 5 workers?
$2.00
Use the above graph to answer the following question. Suppose the government imposes a tax of $6 per unit. What is consumer surplus with the tax?
$20
What price/quantity combination will the monopolist use to maximize profit?
$24, 62 units
Table 7-19: If the market equilibrium price is $28, what is the total producer surplus in the market?
$26
if the market equilibrium price is $28m what is the total producer surplus in the market
$26
What is the equilibrium price and equilibrium quantity?
$26, 35
coffee market: what does consumer surplus in this market decrease by when the price floor of $7 is imposed
$3,150
$6 per unit. what will be the deadweight loss due to the tax
$30
Suppose the government imposes a tax of $6 per unit. What will be the deadweight loss due to the tax?
$30
Figure: Surplus at Equilibrium- What is the consumer surplus at equilibrium?
$300
surplus at equilibrium: use the above figure to answer to following question. what is consumer surplus at equilibrium
$300
Lucinda buys a new motorcycle helmet for $250. She receives consumer surplus of $75 from the purchase. What value does Lucinda place on her motorcycle helmet?
$325
Figure 12-10: The total cost at the profit-maximzing output level equals
$3300
Figure 12-10: The total cost of the profit-maximizing output level equals
$3300
if the market prcie is $10, what is the competitive firm's total cost
$35
Table 15-1: When producing the profit-maximizing output, what is the amount of the firm's profit?
$350
refer to table 15-1 when producing the profit-maximizing output, what is the amount of the firm's profit
$350
What is the deadweight loss due to the monopolist's price/quantity combination?
$500
what is the dead weight loss due to the monopolist's price/quantity combination
$500
Each worker at Casa Bonita costs $12 per hour. The cost of each oven is $20 per day regardless of the number of tacos produced. What is the total daily cost of producing at a rate of 55 tacos per hour if the restaurant operates 8 hours per day?
$520
Figure: Welfare of Taxes- What is the surplus in this market before the tax is imposed?
$6000
Figure: Welfare of taxes- What is the total surplus in this market before the tax is imposed?
$6000
Figure 4-8: What is the size of the per-unit tax?
$7
Figure 7-22: The efficient price is
$70, and the efficient quantity is 100
figure 7-22 the efficient price is
$70, and the efficient quantity is 100
paul goes to Dick's Sporting Goods to buy a new tennis racquet. he is willing to pay $200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from the purchase is
$75
Figure 7-22: If the price decreases from $80 to $70 due to a shift in supply curve, consumer surplus increases by
$750
Figure 7-22: If the price decreases from $80 to $70 due to shift in the supply curve, consumer surplus increases by
$750
When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. When the same firm produces and sells 200 units of output, what is average revenue?
$80
Figure 2-6: If the economy is currently producing at point D, what is the opportunity cost of moving to point A?
0 spoons
figure 2-6 if the economy is currently producing at point D, what is the opportunity cost of moving to point A?
0 spoons
Figure 3-4: As a result, the total output of novels increased by
1 novel
figure 3-4 originally, each producer divided his time equally between the production of novels and the production of poems... as a result, the tota, output of novels increased by
1 novel
Midpoint Method: Using midpoint method, what is the absolute value of the price elasticity of demand between $6 and $9?
1.00
using the table above to answer the following question: using midpoint method, what is the absolute value of the price elasticity of demand between $6 and $9
1.00
Table 2-4: What is Gabe's opportunity cost of mowing a lawn?
1/2 a cultivated garden
Table 2-8: What is Delilah's opportunity cost of making a statue
1/2 of a bench
refer to table 12-1 what is the fixed cost of production?
1000
if jordan spends all of his resources, and technology producing poems, what is the maximum amount of poems he can produce
12 poems
Figure 2-6: If the economy is currently producing at point B, what is the opportunity cost of moving to point A?
16 thousand spoons
Table 2-4: What us gabe's opportunity cost of cultivating a garden?
2 lawns
Table 2-8 what is ellie's opportunity cost of making a bench
3 statues
Table 2-8: What is ellie's opportunity cost of making a bench?
3 statues
Figure 3-4: If Jordan spends all his resources and technology producing novels, what is the maximum amount of novels he can produce?
4 novels
Figure 3-4: what is the maximum amount of novels he can produce?
4 novels
If the economy uses all of its resources to produce steals, whats the maximum amount of steaks it can possible produce?
40 steaks
Midpoint Method: According to the Midpoint method, the government policy should have reduced smoking by
40%
studies indicate that the price elasticity of demand for cigarettes is about 0.4. a government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. according to the midpoint method, the government policy should have reduced smoking by
40%
using the midpoint method, demand is unit elastic when quantity demanded changes from
400 to 300
Midpoint Method: According to the midpoint method, the government policy should have reduced beer consumption by
60%
Use the above graph to answer the following question. If this economy uses all of its resources to produce quesadillas, what's the maximum amount of quesadillas it can possibly produce?
70 quesadillas
suppose the government imposes at tax of P3-P1. what is the consumer surplus with the tax
A
Figure Clorox Wipes: An increase in the price of Clorox wipes would be represented by a movement from
A to B
