Econ Test 2 review

c

. Evan purchases a wall calendar for $9, and his consumer surplus is $1. How much is Evan willing to pay for the wall calendar? a. $9 b. $5 c. $10 d. $8

c

. Refer to Figure 7-1. When the price is P2, consumer surplus is a. A+B+C. b. A+B+D. c. A. d. A+B.

b

. Refer to Figure 8-3. The deadweight loss associated with this tax amounts to a. $80, and this figure represents the amount by which tax revenue to the government exceeds the combined loss of producer and consumer surpluses. b. $80, and this figure represents the surplus that is lost because the tax discourages mutually advantageous trades between buyers and sellers. c. $60, and this figure represents the amount by which tax revenue to the government exceeds the combined loss of producer and consumer surpluses. d. $60, and this figure represents the surplus that is lost because the tax discourages mutually advantageous trades between buyers and sellers.

d

https://gyazo.com/08902e61d90860f41ad8ddf24f7fcbcc

c

https://gyazo.com/1ded3a6d042946dde7aea97eb69f79f0

a

https://gyazo.com/a159d56217ba187d6a3afbf6b21a00a1

d

https://gyazo.com/bc0616a94fb54aee6558976b523fbc3a

d

https://gyazo.com/d8da2aa4772e572aae068a9558911872

b

https://gyazo.com/e117e009eeba4af9914e32e453a73f43

a

https://gyazo.com/f493e19bdbd26e8769630bf60619fc90