Microeconomics Smartwork_5 Assignment

A. $150 ($120 + 30 = $150)

If Andrew buys a textbook for his economics class for $120 and his consumer surplus is $30, Andrew is willing to pay __________ for the textbook. A. $150 B. $120 C. $100 D. $0

Consumer surplus $0.40 ($3.05 - $2.65 = 0.40)

If you are willing to pay $3.05 per pound of asparagus purchased at the grocery store but are required to pay only $2.65, you have gained ____________. What is the actual amount of the difference between what you paid and what you would have paid?

B. the most Amanda is willing to pay; the price Amanda pays

Amanda's consumer surplus is the difference between __________ and __________. A. the most Amanda is willing to pay; the least the seller is willing to accept B. the most Amanda is willing to pay; the price Amanda pays C. the price Amanda pays; the least the seller is willing to accept D. the price Amanda pays; the most she is willing to pay

C. total surpluses

An outcome is efficient when an allocation of resources maximizes __________. A. consumer surplus. B. producer surplus. C. total surplus. D. None of the above is correct.

A. The tax is more than $1.50. B. If supply is perfectly inelastic, the full tax incidence is imposed on the suppliers. G. If demand is less elastic than supply, the buyer bears a larger burden of the tax.

Assume that the government enacts a per-pound tax on deli roast beef. Before the tax, 900 pounds of deli roast beef are sold at an equilibrium price of $6.50 per pound. After the tax, 775 pounds are sold at $8 per pound. Which of the following are true of the tax? A. The tax is more than $1.50. B. If supply is perfectly inelastic, the full tax incidence is imposed on the suppliers. C. The tax is $1.50. D. If demand is more elastic than supply, the buyer bears a larger burden of the tax. E. The tax is less than $1.50.F.If supply is perfectly elastic, the full tax incidence is imposed on the suppliers. G. If demand is less elastic than supply, the buyer bears a larger burden of the tax.

more

Consider the market for salt, which has an inelastic demand. A new tax on salt is likely to raise _______ (more/less/no changes to) revenue than a new tax on a product with a more elastic demand curve.

$87 ($275-$205= $70, $220-$205= $15, $207-$205= $2. 70 + 15 + 2 = $87)

Seller Willingness to pay Michael $275 Ethan $220 Diego $207 Using the table above, calculate the total consumer surplus for Michael ,Ethan , and Diego if the price of a used guitar is $205 .

$23 (11-3 = 8, 14-3= 11, 7-3=4. 8 +11+4= 23).

Suppose that Sheldon, Leonard, and Raj are looking to buy a new comic book. Their willingness to pay is as follows. Sheldon $11.00 Leonard $14.00 Raj $7.00 If the price of the comic book is $3, calculate the total consumer surplus for these three customers.

1. $1550.00 2. $2.00

Suppose that the government enacts a tax on retail sales of road salt, which homeowners and businesses put on walkways and driveways. Assume that the supply of salt is perfectly elastic, due to the ease with which suppliers can stockpile the product. Before the tax, 1000 fifty-pound bags of road salt are sold at an equilibrium price of $6 per bag. After the tax, 775 bags are sold at $8 per bag. 1. How much revenue does the tax generate for the government? 2. What is the amount of the tax? _______ per bag.

(new P -original P) x original Q + (new P - original P) x (new Q - original Q) x 1/2)

What is the equation to find change in Producer surplus?

A. Mike would have paid $100 for a new jacket but ended up paying $70.

Which of these statements illustrates consumer surplus? A. Mike would have paid $100 for a new jacket but ended up paying $70. B. Andre received a 10% discount at the local pizzeria because he is a college student .C. Patricia would have babysat her professor's child for $10 per hour, but he paid her $15 per hour. D. Katie bought a new car for 15% below the sticker price.