Unit 2 Part 2 surpluses and taxes

fixed percentage of income; proportional tax

A tax that takes a ____ is an _____.

$105

if a price of a ticket to see The Nutty Nutcracker is $50 and there is no other market for tickets, then total consumer surplus for the five students is

$80

if the price of the good is $4, producer surplus will equal:

$84

(:Producer surplus and phantom Tickets) Given the information in the table, if the price for Phantom tickets is $55, total producer surplus for the five students is:

proportional tax.

A tax takes a fixed percentage of income, regardless of the level of income, is a:

less; be smaller

Given the demand curve for a good, the more elastic the supply curve, the _____ equilibrium output will fall and deadweight loss will _____ when the government imposes an excise tax.

will decrease

If a frost destroys much of the grapefruit crop total surplus:

$74

If the price of a ticket to see the Nutty Nutcracker is $75, then Caitlin's producer surplus is:

$105

If the ticket to see the Nutty Nutcracker is $50, and there is no other markets for this tickets then total consumer surplus for five students is:

1 and 111 only.

In the accompanying figure, what will certainly happen with an increase in supply?

decreases by $15; $64

In the figure, when the price falls from $30 to $25 ____ for a total consumer surplus of _______

proportional

Income tax rates are such that Mr R Hood earns $35,000 per year and pays $7,000 in taxes. while Mr G Gisborn earns $1 million per year and pays $200,000 on taxes. This tax is:

3;$80

Jeanette is willing to pay $100 for the first pair of shoes $80 for the second pair , $50 for the third, Jeanette will buy ___ pairs of shoes and her total consumersurplus equals ____.

$1,300

Using the graph showing the wireless mouse market calculate producer surplus when the market is in equilibrium

the sum of the individual producer surpluses for all sellers of X.

We can measure total producer surplus for Good X as:

C and E

Which of the following areas represent the change in total surplus when the price falls from P2 to P3

consumers, demand; downward

If an excise tax is imposed on wine and collected from the ____ , the _____ curve will shift _____ by the amount of the tax.

$140,000 ; $90 million

If the gov imposes a $30,000 tax on yachts (collected from producers) the price of the yachts will rise to ____ and the gov will collect tax revenue equal to _____.

Total surplus will fall by areas C and E.

If the government decides to restrict the quantity that is sold to 100, which of the following is not true statement?

demand; downward; $60,000

If the government imposes $60,000 tax on yachts and collects it from the yacht consumers the _____ curve will shift ____ by _____.

$11

Which of the following market prices would result in only 4 reports being produced?

decrease producer surplus

Along the supply curve for brownies, a decrease in the price of brownies will:

4.5%; 4%

Suppose governor maradis decides to initiate state level sales tax of 5% on all sales The table shows how household spending varies with household income. A poor household will spend ______ of its annual income on the sales tax, while a wealthy household will spend _____ of its annual income.

regressive

Suppose the Governor Meeidias decides to initiate a state level sales tax of 5% on all sales. The table shows how household spending varies with household income. This tax will be:

consumers

Suppose the price elasticity of demand is relatively inelastic for Good X. If the price elasticity of supply for Good X is elastic and an excise tax is imposed on Good X, who will bear the greater burden of the tax?

$17

The following table explains the relationship between the number reports a firm is willing to produce and the lowest price it would be willing to accept to prepare the respective number of reports. If the price of a report is $11, what is the value of producer surplus for this firm?

a + f

The government recently levied a $10 tax on the producers of blue jeans. Using the graph, identify the areas that represent the sum of the consumer and producer surplus after the tax was levied

1/2(p1-p3)(Q2-Q1)

The mathematical expression for the efficiency loss resulting from this tax is:

tax incidence

Who pays the ultimate burden of a tax is called:

the consumer surplus to increase

suppose the united states, removes the current sugar quotas and the market price of sugar drops. In the candy bar market, we would expect: