Econ 2100 (7-12)

Refer to Table 7-1. If the price of the product is $15, then who would be willing to purchase the product?

Mike, Sandy, and Johnathan

Refer to figure 8-6. Without a tax, the equilibrium price and quantity are

$10 and 600

Refer to figure 8-6. When the tax is imposed in this market, the price buyers effectively pay is

$16

Refer to Table 7-1. If price of the product is $30 and assume that one person buy at most one product, then the total consumer surplus is

$20

Refer to figure 8-6. What is the government tax revenue after the tax?

$3,000

Refer to figure to 9-5. Without trade, consumer surplus amounts to

$367.50

Refer to figure 8-6. The amount of tax (on per unit of pocket) born by producers is

$4

Refer to figure to 9-6. With tax in place, what is government tariff revenue?

$400

Refer to figure 8-6. The amount of tax (on per unit of product) born by consumers is

$6

Refer to figure to 9-6. Without trade, the equilibrium price of carnations is

$8 and the equilibrium quantity is 300

Refer to figure to 9-5. With trade, producer surplus

$80

Refer to figure to 9-6. With free trade (no tariff), what is the quantity of imports?

400

Refer to figure to 9-9. Total surplus in this market before trade is

A+B+C

Refer to figure to 9-9. Total surplus in this market after trade is

A+B+C+D

Refer to figure 7-7. Which area represents producer surplus when the price is P2?

ACH

Refer to figure 8-1. Suppose the government imposes a tax of P'- P''''. The tax revenue is measured by

K+L

All else equal, what happens to consumer surplus if the price of a good increases?

Consumer surplus decreases

Refer to figure to 9-9. The change in total surplus in this market because of trade is

D, and this area represents a gain in total surplus because of trade.

The world price of a pound of T-bone steak is $9.00. Before Latvia allowed trade in beef, the price of a pound of T-bone steak there was $7.50. Once Latvia traded in beef with other countries, Latvia began

Exporting T-bone steak and the priced per pound in Latvia increased to $9.00.

Refer to figure to 9-6. With tariff, how does domestic production change compared to free trade case?

Increase by 100

Refer to figure 7-13. Total surplus can be measured as the area

JNL

Suppose the supply of milk and water are equally elastic, while the demand for milk is more elastic than the demand for water. Suppose the government levies an equivalent amount of tax on milk and water. The deadweight loss would be larger in the market for

Milk than water because quantity of milk would fall more than the quantity of water.

Senator Blowhard represents a state in which many textile firms are located. He wants to impose tariffs on all imported textiles. Which of the following is the least likely consequence of such tariffs?

More domestic textile sellers will have to exit the market due to the tariffs.

Refer to figure 8-6. What happens to total surplus in this market when the tax is imposed?

Total surplus decreases by $1,500.

Refer to figure 7-13. For a quantity less than M, the value to the marginal buyer is

greater than the cost to the marginal seller, so increasing the quantity increases total