eco exam 2 part 1/2 1-34

Refer to Figure 7-5. If the price of the good is $6, then consumer surplus is $16. $24. You Answered $30. Correct Answer $36.

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Suppose that the government imposes a tax of P3 - P1. Refer to Figure 8-5. Producer surplus before the tax was levied is represented by area A. A+B+C. Correct! D+H+F. F.

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Brock is willing to pay $400 for a new suit, but he is able to buy the suit for $250. His consumer surplus is $650. Correct Answer $150. $250. You Answered $400.

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Elasticity is Correct! a measure of how much buyers and sellers respond to changes in market conditions. the study of how the allocation of resources affects economic well-being. the maximum amount that a buyer will pay for a good. the value of everything a seller must give up to produce a good.

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If two goods are complements, their cross-price elasticity will be positive. Correct Answer negative. zero. You Answered equal to the difference between the income elasticities of demand for the two goods.

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Refer to Figure 6-8. If the government imposes a price ceiling of $2 on this market, then there will be no shortage of the good. You Answered a shortage of 10 units of the good. a shortage of 20 units of the good. Correct Answer a shortage of 30 units of the good

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Refer to Figure 7-12. If the equilibrium price rises from $200 to $350, what is the producer surplus to new producers? $15,000 $3,750 Correct! $7,500 $30,000

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Refer to Figure 7-28. At the quantity Q2, the marginal value to buyers and the marginal cost to sellers are both P2. Correct! is P2, and the marginal cost to sellers is P3. and the marginal cost to sellers are both P3. is P3, and the marginal cost to sellers is P2.

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Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. Total surplus after the tax is measured by the area You Answered I+Y. Correct Answer J+K+L+M. I+Y+B. I+J+K+L+M+Y.

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Table 7-13 The only four producers in a market have the following costs: Seller Cost Abbey $30 Bev $40 Carl $55 Dale $65 Refer to Table 7-13. If the sellers bid against each other for the right to sell the good to a single consumer, then the producer surplus will be $0 or slightly more. You Answered $5 or slightly less. Correct Answer $10 or slightly less. $25 or slightly less.

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If a binding price floor is imposed on the market for eBooks, then the demand for eBooks will decrease. the supply of eBooks will increase. Correct Answer a surplus of eBooks will develop. You Answered All of the above are correct

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If a binding price floor is imposed on the video game market, then the quantity of video games demanded will decrease. the quantity of video games supplied will increase. a surplus of video games will develop. Correct! All of the above are correct.

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On a graph, the area below a demand curve and above the price measures producer surplus. Correct Answer consumer surplus. You Answered deadweight loss. willingness to pay.

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Refer to Figure 5-17. Using the midpoint method, what is the price elasticity of supply between point B and point C? Correct Answer 1.44 You Answered 1.29 0.96 0.69

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Refer to Figure 6-9. A price ceiling set at $4 will be binding and will result in a shortage of 8 units. Correct! $4 will be binding and will result in a shortage of 16 units. $7 will be binding and will result in a surplus of 4 units. $7 will be binding and will result in a surplus of 8 units.

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The cross-price elasticity of demand can tell us whether goods are normal or inferior. elastic or inelastic. You Answered luxuries or necessities. Correct Answer complements or substitutes.

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The minimum wage, if it is binding, lowers the incomes of no workers. Correct Answer only those workers who become unemployed. You Answered only those workers who have jobs. all workers.

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When a tax is imposed in a market, it will​ You Answered ​alter the behavior of buyers. ​alter the behavior of sellers. ​have no effect on the behavior or either buyers or sellers. Correct Answer ​affect the behavior of both buyers and sellers.

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When a tax is placed on the sellers of energy drinks, the sellers bear the entire burden of the tax. You Answered buyers bear the entire burden of the tax. burden of the tax will be always be equally divided between the buyers and the sellers. Correct Answer burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.

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Which of the following is likely to have the most price inelastic demand? strawberry-banana milk shakes Correct! gasoline in the short run diamond earrings box seats at a major league baseball game

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As we move downward and to the right along a linear, downward-sloping demand curve, You Answered both slope and elasticity remain constant. slope changes but elasticity remains constant. both slope and elasticity change. Correct Answer slope remains constant but elasticity changes.

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Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is doubled, the base of the triangle that represents the deadweight loss doubles. height of the triangle that represents the deadweight loss doubles. deadweight loss of the tax quadruples. Correct! All of the above are correct.

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Figure 6-13 This figure shows the market demand and market supply curves for good X. Refer to Figure 6-13. Which of the following statements is correct? You Answered A price ceiling set at $6 would be binding, but a price ceiling set at $4 would not be binding. A price floor set at $4 would be binding, but a price ceiling set at $4 would not be binding. A price ceiling set at $3.50 would result in a surplus. Correct Answer A price floor set at $6.50 would result in a surplus.

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Refer to Figure 7-14. At the equilibrium price, producer surplus is $800. Correct Answer $400. $450. You Answered $900.

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Refer to Figure 7-21. When the price is P1, area C represents total benefit. Correct! producer surplus. consumer surplus. None of the above is correct.

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Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The deadweight loss due to the tax is measured by the area J+K+L+M. J+K+L+M+N. Correct! I+Y. I+Y+B.

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Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. Without the tax, the producer surplus is (P5-0) x Q5. Correct Answer 1/2 x (P5-0) x Q5. (P8-0) x Q2. You Answered 1/2 x (P8-0) x Q2.

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Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200. Susan is willing to dog sit for Rebecca so long as she receives at least $150. Rebecca and Susan agree on a price of $175. Suppose the government imposes a tax of $10 on dog sitting. The tax has made Rebecca and Susan worse off by a total of $50. $40. $20. Correct! $10.

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The price elasticity of supply measures how responsive Correct! sellers are to a change in price. sellers are to a change in buyers' income. buyers are to a change in production costs. equilibrium price is to a change in supply.

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The vertical distance between points A and C represents a tax in the market. Refer to Figure 8-9. The imposition of the tax causes the price paid by buyers to Correct Answer increase from $600 to $800. increase from $300 to $800. You Answered decrease from $600 to $300. remain unchanged at $600.

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A tax placed on buyers of tuxedoes shifts the You Answered demand curve for tuxedoes downward, decreasing the price received by sellers of tuxedoes and causing the quantity of tuxedoes to increase. Correct Answer demand curve for tuxedoes downward, decreasing the price received by sellers of tuxedoes and causing the quantity of tuxedoes to decrease. supply curve for tuxedoes upward, decreasing the effective price paid by buyers of tuxedoes and causing the quantity of tuxedoes to increase. supply curve for tuxedoes upward, increasing the effective price paid by buyers of tuxedoes and causing the quantity of tuxedoes to decrease

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The amount of deadweight loss from a tax depends upon the price elasticity of demand. price elasticity of supply. amount of the tax per unit. Correct! All of the above are correct.

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Refer to Figure 7-14. At the equilibrium price, producer surplus is $800. Correct Answer $400. $450. You Answered $900.

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Table 6-2 Price Quantity Demanded Quantity Supplied $0 375 0 $5 300 50 $10 225 100 $15 150 150 $20 75 200 $25 0 250 Refer to Table 6-2. A price ceiling set at $5 results in Correct! 50 units sold. 250 units sold. 300 units sold. 350 units sold.

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