econ exam 2
acme inc. is a seller of the good. acme sells a unit of the good to a buyer and then pays the tax on that unit to the government. after paying the tax, acme receives how much? a. $8 b. $9 c. $10.50 d. $12
a
suppose the government imposes a $2 tax on this market. suppose D1 represents the demand curve for gasoline in both the short run and long run, S1 represents the supply curve for gasoline in the shortrun, and S2 represents the supply curve for gasoline in the long run. After the imposition of the $2 tax, the price paid by buyers will be a. higher in the long run than in the short run b. higher in the short run than in the long run c. equivalent in the short run and the long run d. unable to be determined
a
the vertical distance between points A and B represents the tax in the market a. $6 b. $8 c.$14 d.$24
b
a goverment imposed tax price of $12 in this market is an example of a a.binding price ceiling that creates a shortage b. nonbinding price ceiling that creates a shortage c. binding price floor that creates a surplus d. nonbinding price floor that creates a surplus
c
consider the us market for chocolate, a market in which the government has imposed a nonbinding price ceiling. which of the following events could convert the price ceiling from a nonbinding to binding price ceiling? a. a government study that shows that consuming chocolate increases cancer b. a large increase in the size of the cocoa bean crop, cocoa beans are used to produce chocolate c. south american cocoa bean producers refuse to ship to chocolate producers in the united states d. a sharp drop in consumer income; chocolate is a normal good
c
suppose a tax of $2 per unit is imposed on this market. what will be the new equilibrium quantity in this market? a. less than 60 units b. 60 units c. between 60 and 100 units d. greater than 100 units
c
the price ceiling causes quantity a. supplied to exceed quantity demanded by 60 units b. supplied to exceed quantity by 90 units c. demanded to exceed quantity supplied by 30 units d. demanded to exceed quantity supplied by 90 units
d