Try out our new practice tests completely free!

# Essentials of Microeconomics

Bookmark

## Quiz 15 : Price Regulation, Taxes and Subsidies

Which of the following statements is true?
Free
Multiple Choice

D

Which statement is true?
Free
Multiple Choice

B

Consider a market with a demand curve of P = 15 - q and a supply curve of P = 2q.If the government levies a tax on consumers of $3 per unit, what is the resulting DWL? Free Multiple Choice Answer: Answer: C Consider a market in which the law of demand hold, but supply is perfectly inelastic.The government levies a tax on consumers of t per unit consumed.In this case Multiple Choice Answer: Consider a market with a demand curve of P = 15 - q and a supply curve of P = 2q.If the government levies a tax on consumers of$3 per unit, what are the prices paid by consumers (Pc) and the price received by suppliers (Ps)?
Multiple Choice
Consider a market in which demand is given by P = 30 - 2q and supply is given by P = q.If the government imposes a tax of $6 per unit on suppliers, the resulting DWL is: Multiple Choice Answer: Which statement is true? Multiple Choice Answer: Consider a market with a demand curve of P = 15 - q and a supply curve of P = 2q.If the government levies a tax on consumers of$3 per unit, what is the equilibrium quantity traded in the market.