Micro Economics Anirudh Bagchi Test #2 with diagrams
a. D1
Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand? a. D1 b. D2 c. D3 d. All of the above are equally elastic.
c. A+B+C.
Refer to Figure 7-1. When the price is P1, consumer surplus is a. A. b. A+B. c. A+B+C. d. A+B+D.
a. ACG.
Refer to Figure 7-17. At equilibrium, total surplus is measured by the area a. ACG. b. AFG. c. KBG. d. CFG.
a. the good is overproduced relative to the efficient output level and total surplus can be increased by reducing its production.
Refer to Figure 7-17. If 10 units of the good are produced and sold, then a. the good is overproduced relative to the efficient output level and total surplus can be increased by reducing its production. b. producer surplus is maximized. c. total surplus is minimized. d. the good is underproduced relative to the efficient output level and total surplus can be increased by increasing its production.
a. AC.
Refer to Figure 7-18. Buyers who value this good more than the equilibrium price are represented by which line segment? a. AC. b. CK. c. BC. d. CH.
c. BC.
Refer to Figure 7-18. Sellers whose costs are less than the equilibrium price are represented by which line segment? a. AC. b. CK. c. BC. d. CH.
a. BCG
Refer to Figure 7-7. Which area represents producer surplus when the price is P1? a. BCG b. ACH c. ABGD d. DGH
d. 2.33
Refer to Table 5-3. The table shows the demand schedule for a particular good. Using the midpoint method, what is the price elasticity of demand when price rises from $9 to $12? a. 0.43 b. 0.67 c. 1.50 d. 2.33
c. $46.
Refer to Table 7-1. If the price of the product is $18, then the total consumer surplus is a. $38. b. $42. c. $46. d. $72.
b. $750.
Refer to Table 7-6. If the market price is $1,000, the producer surplus in the market is a. $700. b. $750. c. $2,250. d. $3,700.
d. $8.
The price that buyers pay after the tax is imposed is a. $5. b. $6. c. $7. d. $8.
a. $1 per unit.
The burden of the tax on sellers is a. $1 per unit. b. $1.50 per unit. c. $2 per unit. d. $3 per unit.