# Quiz 3: Using Supply and Demand to Analyze Markets

Business

Q 1Q 1

The demand for a good is given by Q

^{D}= 750 - 0.4P. What is consumer surplus at a price of $80? A) $644,405 B) $57,440 C) $1,875 D) $71,800Free

Multiple Choice

A

Q 2Q 2

(Figure: Market for Good X II) Before the subsidy, producer surplus is ____ and after the subsidy, producer surplus is ____.
A) $25.00; $16.00
B) $32.00; $50.00
C) $16.00; $25.00
D) $32.00; $30.00

Free

Multiple Choice

C

Q 3Q 3

(Figure: Market for Tickets II) Before the tax, producers receive the price ____ and after the tax, producers receive the price ____.
A) $5.50; $6.00
B) $5.50; $5.00
C) $6.00; $5.00
D) $5.00; $6.00

Free

Multiple Choice

B

Q 4Q 4

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q

^{D}= 400 - 250P and Q^{S}= 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The producer surplus with the price ceiling is: A) $26.25. B) $12. C) $6.25. D) $1.25.Free

Multiple Choice

Q 5Q 5

(Figure: Market for Tickets II) The government tax revenue is:
A) B + E.
B) B + C + E + F.
C) E + F.
D) B + C.

Free

Multiple Choice

Q 6Q 6

At the equilibrium price of $10, the elasticity of demand and supply are -0.9 and 1.10. If the government institutes a tax of $1 per unit, sellers will receive _____ and consumers will pay _____.
A) $9.55; $10.55
B) $10.25; $11.25
C) $9.80; $10.80
D) $9.75; $10.75

Free

Multiple Choice

Q 7Q 7

To calculate producer surplus:
A) integrate the area under the demand curve and above the equilibrium price.
B) integrate the area under the demand curve and above the supply curve.
C) integrate the area under the equilibrium price and above the supply curve.
D) integrate the area under the supply curve.

Free

Multiple Choice

Q 8Q 8

(Figure: Price and Quantity IV) Suppose the government mandates a price ceiling of $8 per pound. Consumer surplus:
A) increases by $700.
B) increases by $800.
C) increases by $300.
D) decreases by $150.

Free

Multiple Choice

Q 9Q 9

(Figure: Market for Good X II) The total cost of the subsidy for the government is ____.
A) $2.00
B) $10.00
C) $20.00
D) $16.00

Free

Multiple Choice

Q 10Q 10

(Figure: Price and Quantity V) For demand curve D

_{1}, the level of consumer surplus at a price of $40 is: A) $600. B) $300. C) $1200. D) $10.Free

Multiple Choice

Q 11Q 11

Consumer surplus can be calculated as:
A) , where Q

_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{D}) is the inverse demand curve. B) , where Q_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{S}) is the inverse supply curve. C) , where Q_{e}is the quantity that would occur in free-market equilibrium and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively. D) , where Q_{a}denotes actual quantity, Q_{e}is the quantity that would occur in free-market equilibrium, and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively.Free

Multiple Choice

Q 12Q 12

The demand and supply of pickles are given by Q

^{D}= 300 - 500P and Q^{S}= 400P - 150, where P is the price per pickle and Q measures the quantity of pickles in millions. Suppose the government creates a subsidy of $0.25 per pickle. Which of the following statements are TRUE? I) Without the subsidy, the equilibrium quantity of pickles is 75 million. II) With the subsidy, consumers pay 38.9 cents per pickle. III) With the subsidy, producers receive 75 cents per pickle. IV) With the subsidy, the equilibrium quantity of pickles is greater than 100 million. A) II, III, and IV B) I and III C) II and IV D) I, III, and IVFree

Multiple Choice

Q 13Q 13

(Figure: Market for Magazines I) The supply equation in the adult magazine market is given by Q

^{S}= 2P - 4, where P is the price per magazine and Q measures the number of magazines in thousands. Which supply curve reflects a government quota of 6,000 magazines? A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)Free

Multiple Choice

Q 14Q 14

The deadweight loss (owing to a price ceiling) increases as demand becomes more _____ and supply becomes more _____.
A) inelastic; inelastic
B) elastic; inelastic
C) elastic; elastic
D) inelastic; elastic

Free

Multiple Choice

Q 15Q 15

(Figure: Market for Tickets II) The size of the tax is:
A) $1.00.
B) $0.50.
C) $4.00.
D) $2.00.

Free

Multiple Choice

Q 16Q 16

If the government subsidizes a product, what is the relationship between the price that buyers pay (P

_{B}) and the price that sellers receive (P_{S})? A) P_{B}+ subsidy = P_{S}B) P_{B}+ P_{S}= subsidy C) P_{B}= P_{S}+ subsidy D) P_{B}(1 + subsidy) = P_{S}Free

Multiple Choice

Q 17Q 17

The demand and supply of movie tickets are given by Q

^{D}= 30 - 3P and Q^{S}= 4P - 19, where P is the price per ticket and Q is in thousands of tickets. If the government places a $1 tax on each ticket, the prices that consumers pay with and without the tax are _____ and _____, respectively. A) $8; $7 B) $7.57; $7 C) $7.50; $6.50 D) $4.30; $3.80Free

Multiple Choice

Q 18Q 18

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q

^{D}= 400 - 250P and Q^{S}= 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The consumer surplus with the price ceiling is: A) $22. B) $26.25. C) $28. D) $1.25.Free

Multiple Choice

Q 19Q 19

Deadweight loss can be calculated as:
A) , where Q

_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{D}) is the inverse demand curve. B) , where Q_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{S}) is the inverse supply curve. C) , where Q_{e}is the quantity that would occur in a free-market equilibrium and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively. D) , where Q_{a}denotes actual quantity, Q_{e}is the quantity that would occur in a free-market equilibrium, and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively.Free

Multiple Choice

Q 20Q 20

The market for organic cabbage is represented by Q

^{D}= 1,200 - 75P and Q^{S}= 425P - 300, where P is the price per head of cabbage and Q measures the number of heads of cabbage per week. Suppose the price of organic fertilizer falls, making sellers willing to sell 100 more heads of cabbage per week at every price. What happens to producer and consumer surplus as a result of this change? A) Consumer surplus increases by $196.50, and producer surplus increases by $36.97. B) Consumer surplus increases by $196.50, and producer surplus increases by $42.37. C) Consumer surplus remains unchanged, but producer surplus increases by $93.02. D) Consumer surplus increases by $296.50, and producer surplus increases by $36.97.Free

Multiple Choice

Q 21Q 21

(Figure: Price and Quantity VII) The area that represents the deadweight loss from the change in demand from D

_{1}to D_{2}is: A) There is no deadweight loss. B) A + E. C) B + C. D) D.Free

Multiple Choice

Q 22Q 22

(Figure: Market for Snow Blowers I) The size of the tax is:
A) $125.
B) $65.
C) $190.
D) $200.

Free

Multiple Choice

Q 23Q 23

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q

^{D}= 400 - 250P and Q^{S}= 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. As a result of the price ceiling, there is a shortage of: A) 250 pounds of cotton. B) 200 pounds of cotton. C) 150 pounds of cotton. D) 100 pounds of cotton.Free

Multiple Choice

Q 24Q 24

(Figure: Market for Snow Blowers I) Which of the following statements is (are) TRUE? I. The price sellers receive after tax is $250.
II) With the tax, consumers pay $315 per snow blower.
III) The government collects $200,000 in tax revenue.
A) I and III
B) II and III
C) II
D) I, II, and III

Free

Multiple Choice

Q 25Q 25

In a small country, the demand and supply of kidneys are represented by Q

^{D}= 10,000 - 0.25P and Q^{S}= 0.5P + 4,000. Which of the following statements is (are) TRUE? I) The equilibrium price is $8,000. II) At a price ceiling of $0, there are 4,000 volunteer donors. III) At a price ceiling of $0, there is an excess demand of 14,000 kidneys. A) I, II, and III B) II and III (because the demand curve shifts out, pushing up the price) C) I and II D) IIIFree

Multiple Choice

Q 26Q 26

(Figure: Market for Comic Books I) The quota at S

_{2}causes producer surplus to: A) decrease from $12 to $2. B) decrease from $8 to $2. C) increase from $8 to $12. D) increase from $8 to $10.Free

Multiple Choice

Q 27Q 27

(Figure: Market for Good X II) The deadweight loss when providing the subsidy is ____.
A) $2.00
B) $4.00
C) $20.00
D) $16.00

Free

Multiple Choice

Q 28Q 28

(Figure: Market for Ammunition I) Assuming the government implements the quota of 200 boxes/week, the producer surplus is:
A) A + B + E.
B) D.
C) C + D + F.
D) B + C + D.

Free

Multiple Choice

Q 29Q 29

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q

^{D}= 10 - 2.25P And the market supply curve is given by Q^{S}= -10 + 2.75P Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. After the quota is imposed, the price becomes ____. A) $4.00 B) $4.22 C) $5.00 D) $5.22Free

Multiple Choice

Q 30Q 30

(Figure: Market for Asparagus I) Relative to the initial market equilibrium, at a price ceiling of $2, what is the amount of surplus transferred from producers to consumers?
A) $4,000
B) $2,000
C) $1,000
D) $500

Free

Multiple Choice

Q 31Q 31

To calculate deadweight loss:
A) integrate the area between the demand and supply curves over the range of the difference between zero and the free-market equilibrium quantity.
B) integrate the area between the demand and supply curves over the range of the difference between the quantity corresponding to the choke price and the free-market equilibrium quantity.
C) integrate the area between the demand and supply curves over the range of the difference between zero and the actual quantity.
D) integrate the area between the demand and supply curves over the range of the difference between the actual and free-market equilibrium quantities.

Free

Multiple Choice

Q 32Q 32

All else being equal, a negative supply shock:
A) causes consumer surplus to increase and producer surplus to decrease.
B) causes consumer surplus to decrease and producer surplus to increase.
C) causes both consumer and producer surplus to increase.
D) causes both consumer and producer surplus to decrease.

Free

Multiple Choice

Q 33Q 33

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q

^{D}= 400 - 250P and Q^{S}= 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The deadweight loss with the price ceiling is: A) $26.25. B) $40.00. C) $62.50. D) $1.25.Free

Multiple Choice

Q 34Q 34

(Figure: Market for Enplanements) From the year 2000 to 2001, the demand curve for air travel shifted inward, from D

_{2000}to D_{2001}. In 2000, the equilibrium price and quantity were $122.22 and 148.9 million enplanements, respectively. In 2001, the equilibrium price and quantity fell to $104.82 and 123.6 million enplanements, respectively. The loss in producer surplus attributable to the decrease in demand is equal to area: A) A. B) A + B. C) B + C. D) B.Free

Multiple Choice

Q 35Q 35

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P Where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price in dollars for each unit. The producer surplus at the equilibrium price is ____. A) $1,805,000 B) $3,610,000 C) $4,560,000 D) $7,220,000Free

Multiple Choice

Q 36Q 36

The demand and supply of ethanol (a renewable fuel from plant materials) are given by Q

^{D}= 8,000 - 2,000P and Q^{S}= 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. If the government subsidizes ethanol by $0.30 per gallon, what is the deadweight loss? A) $30 B) $7,800 C) $440 D) $119Free

Multiple Choice

Q 37Q 37

(Figure: Market for Tickets I) Which of the following statements is (are) TRUE? I. Consumer surplus after the tax is area A + B.
II) Producer surplus before the tax is D + E + F.
III) Consumer surplus before the tax is A + C + E.
IV) The size of the tax is $0.50, raising $170,000 in tax revenue.
A) I and II
B) II, III, and IV
C) IV
D) II and IV

Free

Multiple Choice

Q 38Q 38

Producer surplus can be calculated as:
A) , where Q

_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{D}) is the inverse demand curve. B) , where Q_{e}and P_{e}are the equilibrium quantity and price, respectively, and P(Q_{S}) is the inverse supply curve. C) , where Q_{e}is the quantity that would occur in free-market equilibrium and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively. D) , where Q_{a}denotes actual quantity, Q_{e}is the quantity that would occur in free-market equilibrium, and P(Q_{D}) and P(Q_{S}) are inverse demand and supply, respectively.Free

Multiple Choice

Q 39Q 39

Suppose that the demand curve for an advanced technology product for businesses is given by P =10,000 - 4Q

^{3}and supply is P = 2,000 + 4Q^{3}. The consumer surplus at the equilibrium price is ____. A) $6,000 B) $10 C) $70,000 D) $30,000Free

Multiple Choice

Q 40Q 40

Suppose that a minimum price (price floor) is legislated. To calculate producer surplus:
A) integrate the area below the price floor and above the supply curve between zero and the free-market equilibrium price.
B) integrate the area below the price floor and above the supply curve between zero and the quantity resulting from the price floor.
C) integrate the area under the demand curve and above the price floor between zero quantity and the quantity resulting from the price floor.
D) integrate the area under the demand curve and above the supply curve between zero quantity and the quantity resulting from the price floor.

Free

Multiple Choice

Q 41Q 41

(Figure: Price and Quantity VII) The area that represents consumer surplus with the demand curve D

_{1}is _____, and the area that represents consumer surplus with the demand curve D_{2}is ____. A) B; A + B B) A + B; B + C C) B + C; A + B + C + E D) B + C; A + BFree

Multiple Choice

Q 42Q 42

(Figure: Price and Quantity IV) At a price ceiling of $8, there is a shortage of _____ and a deadweight loss of _____.
A) 200 pounds; $1,200
B) 500 pounds; $400
C) 300 pounds; $600
D) 300 pounds; $300

Free

Multiple Choice

Q 43Q 43

The market for plywood (a sheet of wood used in construction) is characterized by the following demand and supply equations: Q

^{D}= 800 - 10P and Q^{S}= 50P - 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. If the government imposes a price ceiling of $25 per sheet of plywood, producer surplus: A) increases by $892. B) decreases by $3,750. C) decreases by $635. D) decreases by $1,875.Free

Multiple Choice

Q 44Q 44

All else being equal, a demand increase:
A) causes consumer surplus to increase and producer surplus to decrease.
B) causes consumer surplus to decrease and producer surplus to increase.
C) causes both consumer and producer surplus to increase.
D) causes both consumer and producer surplus to decrease.

Free

Multiple Choice

Q 45Q 45

Nancy paid $55 for car mats but was willing to pay $80. What is Nancy's consumer surplus?
A) $80
B) $15
C) $25
D) $135

Free

Multiple Choice

Q 46Q 46

(Figure: Market for Peanuts II) If the government mandates a price floor of $750, the area of consumer surplus:
A) increases from A to A + B + C.
B) decreases from A + B + C to A.
C) increases from A to B + C.
D) decreases from B + C to A.

Free

Multiple Choice

Q 47Q 47

The price elasticity of demand is -1.25, and the share of the tax borne by consumers is 0.80. What is the price elasticity of supply?
A) 6
B) 5
C) 1.56
D) 1

Free

Multiple Choice

Q 48Q 48

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q

^{D}= 10 - 2.25P And the market supply curve is given by Q^{S}= -10 + 2.75P Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. The deadweight loss as a result of the quota is ____. A) $1,000 B) $500,000 C) $1,500 D) $1,605Free

Multiple Choice

Q 49Q 49

In the market for used cars, the demand and supply equations are given by Q

^{D}= 12,000 - 0.4P and Q^{S}= 0.1P + 5,000, where P is the price per car and Q measures the quantity of cars. What is the size of the deadweight loss at a price floor of $15,000? A) $250,000 B) $500,000 C) $750,000 D) $1 millionFree

Multiple Choice

Q 50Q 50

Which of the following supply curves (where P is price per bushel and Q

^{S}measures number of bushels) generates $64 of producer surplus at a market price of $10 per bushel? A) Q^{S}= 7.5P - 1.5 B) Q^{S}= 10P - 3 C) Q^{S}= 2P - 4 D) Q^{S}= 6P - 8Free

Multiple Choice

Q 51Q 51

(Figure: Price and Quantity III) An increase in demand caused consumer surplus to change from _____ to _____.
A) $16,000; $36,000
B) $8,000; $18,000
C) $8,000; $12,000
D) $4,000; $9,000

Free

Multiple Choice

Q 52Q 52

(Figure: Market for Golf I) The supply of private golf courses is S

_{private}_{golf}and the supply of private and public golf courses is S_{total}. The government provision of public golf courses reduced the number of rounds per week played on private golf courses by: A) 400. B) 200. C) 100. D) 50.Free

Multiple Choice

Q 53Q 53

The demand and supply of ethanol (a renewable fuel from plant materials) are given by Q

^{D}= 8,000 - 2,000P and Q^{S}= 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. What does it cost the government to subsidize ethanol by $0.30 a gallon? A) $660 B) $14,000 C) $150 D) $2,000Free

Multiple Choice

Q 54Q 54

Suppose that the demand curve for an advanced technology product for businesses is given by P =10,000 - 4Q

^{3}and supply is P = 2,000 + 4Q^{3}. The equilibrium price is ____ and the equilibrium quantity is ____. A) $6,000: 10 B) $10; 6,000 C) $70,000; 10 D) $30,000; 20Free

Multiple Choice

Q 55Q 55

To calculate consumer surplus for the case when a quota is in place:
A) integrate the area under the demand curve and above the free-market equilibrium price.
B) integrate the area under the demand curve and above the price determined by the market after the quota is in place.
C) integrate the area above the supply curve and under the price determined by the market after the quota is in place.
D) integrate the area under the demand curve and above the supply curve between zero and the quota quantity.

Free

Multiple Choice

Q 56Q 56

Suppose that the demand curve for an advanced technology product for businesses is given P =10,000 - 4Q

^{3}and supply is P = 2,000 + 4Q^{3}. The producer surplus at the equilibrium price is ____. A) $6,000 B) $10 C) $70,000 D) $30,000Free

Multiple Choice

Q 57Q 57

Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds, respectively. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, producer surplus:
A) increased from $25 million to $42 million.
B) increased from $12.5 million to $24.5 million.
C) increased from $3 million to $7 million.
D) increased from $4.2 million to $5.6 million.

Free

Multiple Choice

Q 58Q 58

(Figure: Market for Peanuts II) At a price floor of $750, there is an excess supply of _____ tons of peanuts.
A) 18 million
B) 12 million
C) 15 million
D) 37 million

Free

Multiple Choice

Q 59Q 59

Suppose that the demand curve for brown rice is given by P = 50,000 - 3Q

^{2}, and supply is P = -10,000 + 3Q^{2}. The consumer surplus at the equilibrium price is ____. A) $1,000,000 B) $200,000 C) $100,000 D) $2,000,000Free

Multiple Choice

Q 60Q 60

(Figure: Price and Quantity II) The outward shift of the supply curve will cause consumer surplus to increase from area _____ to area _____.
A) A + B; C + D
B) A + B; A + B + C + D + E + F
C) B + C; F
D) A; A + B + C + D

Free

Multiple Choice

Q 61Q 61

(Figure: Market for Peanuts I) Suppose the government enacts a price ceiling of $250 per ton. Which of the following statements are TRUE? I. Consumer surplus before the price ceiling is area A + B + C.
II) Consumer surplus after the price ceiling is area D + E.
III) Producer surplus before the price ceiling is area D + E + G.
IV) Producer surplus after the price ceiling is area F.
A) I, II, and IV
B) I and IV
C) II and III
D) II, III, and IV

Free

Multiple Choice

Q 62Q 62

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q

^{D}= 10 - 2.25P And the market supply curve is given by Q^{S}= -10 + 2.75P Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. After the quota is imposed, the quantity demanded becomes ____. A) 1,000,000 B) 500,000 C) 1,500,000 D) 1,605,000Free

Multiple Choice

Q 63Q 63

(Figure: Market for Grapefruits I) At a market price of $4, what is total consumer surplus?
A) $120
B) $320
C) $160
D) $80

Free

Multiple Choice

Q 64Q 64

Suppose that the demand curve for brown rice is given P= 50,000 - 3Q

^{2}, and supply is P = -10,000 + 3Q^{2}. The consumer surplus at the equilibrium price is ____. A) $1,000,000 B) $200,000 C) $100,000 D) $2,000,000Free

Multiple Choice

Q 65Q 65

The supply and demand for solar panels are given by Q

^{S}= 5P - 5,000 and Q^{D}= 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. Before the subsidy, producers receive ____ and after the subsidy, producers receive ____. A) $2,000; $1,750 B) $2,000; $2,250 C) $2,250; $2,000 D) $1,750; $2,250Free

Multiple Choice

Q 66Q 66

(Figure: Market for Good X I) Which of the following statements is (are) TRUE? I. A tax on buyers of $3 per unit raises the price buyers pay to $6.
II) A tax on sellers of $3 per unit raises the price buyers pay to $6.
III) With a tax on sellers of $3 per unit, the share of the tax paid by buyers is 67%.
A) I, II, and III
B) I and III
C) II and III
D) I

Free

Multiple Choice

Q 67Q 67

(Figure: Price and Quantity I) The decrease in supply from S

_{1}to S_{2}will cause consumer surplus to _____ and producer surplus to _____. A) decrease by $10.50; decrease by $4.50 B) decrease by $5.50; increase by $3 C) increase by $6; decrease by $18 D) decrease by $10.50; decrease by $6.67Free

Multiple Choice

Q 68Q 68

If the government quit subsidizing a product, consumer surplus would _____ and producer surplus would _____.
A) increase; decrease
B) decrease; decrease
C) increase; increase
D) decrease; increase

Free

Multiple Choice

Q 69Q 69

(Figure: Market for Tickets II) Before the tax, consumers pay the price ____ and after the tax, consumers pay the price ____.
A) $5.50; $6.00
B) $5.50; $6.50
C) $6.00; $5.50
D) $5.00; $6.00

Free

Multiple Choice

Q 70Q 70

Suppose that the demand curve for brown rice is given by P= 50,000 - 3Q

^{2}, and supply is P = -10,000 + 3Q^{2}. The equilibrium price is ____ and the equilibrium quantity is ____. A) $110,000; 200 B) $20,000; 100 C) $100; 20,000 D) $2,000; 1,000Free

Multiple Choice

Q 71Q 71

(Figure: Market for Tickets II) Refer to Figure: Market for Tickets II to answer the following question. Before the tax, consumer surplus is ____ and after the tax, consumer surplus is ____.
A) A + B + E; A
B) A + B + E; B
C) A + B + C + D +E + F; A + B + C + D
D) A + B + C; A + B + C + D

Free

Multiple Choice

Q 72Q 72

Suppose the demand and supply curves for shampoo are given by
Q

^{D}= 18 - 5P Q^{S}= -3 + 2P Where Q^{D}is the quantity of shampoo demanded (in thousands of bottles), Q^{S}is the quantity supplied, and P is the price of shampoo (in dollars per bottle). The equilibrium price in this market is ____ and the equilibrium quantity is ____. A) $3; 3,000 B) $3; 900 C) $6; 6,000 D) $2; 8,000Free

Multiple Choice

Q 73Q 73

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P Where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price in dollars for each unit. Consumer surplus at the equilibrium price is ____. A) $14,440,000 B) $7,800,000 C) $6,000,000 D) $7,220,000Free

Multiple Choice

Q 74Q 74

Suppose the demand and supply curves for shampoo are given by
Q

^{D}= 18 - 5P Q^{S}= -3 + 2P Where Q^{D}is the quantity of shampoo demanded (in thousands of bottles), Q^{S}is the quantity supplied, and P is the price of shampoo (in dollars per bottle). The consumer surplus at the equilibrium price is ____. A) $9 B) $900 C) $450 D) $4.50Free

Multiple Choice

Q 75Q 75

(Figure: Market for Tickets II) As a result of the tax, the deadweight loss is:
A) B + E.
B) B + C + E + F.
C) E + F.
D) B + C.

Free

Multiple Choice

Q 76Q 76

The supply and demand for solar panels are given by Q

^{S}= 5P - 5,000 and Q^{D}= 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. Before the subsidy, consumers pay price ____ and after the subsidy, consumers pay price ____. A) $2,000; $1,750 B) $2,000; $2,250 C) $2,250; $2,000 D) $1,750; $2,250Free

Multiple Choice

Q 77Q 77

(Figure: Market for Comic Books I) The quota at S

_{2}causes consumer surplus to: A) increase from $8 to $16. B) decrease from $8 to $2. C) decrease from $16 to $12. D) decrease from $12 to $4.Free

Multiple Choice

Q 78Q 78

Suppose that technological breakthroughs make jet packs affordable, convenient, and safe for personal transportation. The demand for automobiles would become _____ the consumer surplus from automobiles.
A) more price elastic, decreasing
B) more price inelastic, increasing
C) more price inelastic, decreasing
D) perfectly inelastic, increasing

Free

Multiple Choice

Q 79Q 79

Which of the following payroll taxes would be most beneficial for workers (e.g., provide the highest after-tax wage)?
A) 5% on workers and 10% on employers
B) 9% on workers and 6% on employers
C) 12% on workers and 1% on employers
D) 2% on workers and 14% on employers

Free

Multiple Choice

Q 80Q 80

(Figure: Price and Quantity VII) The area that represents producer surplus with the demand curve D

_{1}is _____, and the area that represents producer surplus with the demand curve D_{2}is ____. A) D; C + D + E B) D; D + C C) C + D + E; D D) B + C; A + BFree

Multiple Choice

Q 81Q 81

If the legal burden of a tax is passed from sellers to buyers:
A) the price paid by buyers will rise.
B) the price paid by sellers will fall.
C) the equilibrium quantity falls.
D) deadweight loss is unchanged.

Free

Multiple Choice

Q 82Q 82

(Figure: Market for Good X II) In this example, the subsidy is ____ for each quantity produced.
A) $4.00
B) $10.00
C) $8.00
D) $6.00

Free

Multiple Choice

Q 83Q 83

(Figure: Price and Quantity V) For demand curve D

_{2}, consumer surplus is $6,400 at a price of $40. Given this, the demand choke price for D_{2}is: A) $200. B) $300. C) $100. D) $60.Free

Multiple Choice

Q 84Q 84

(Figure: Market for Ammunition I) In the free market result, the consumer surplus is:
A) A + B + E.
B) A.
C) C + D + F.
D) B + C + D.

Free

Multiple Choice

Q 85Q 85

If the government subsidizes the production of a good:
A) deadweight loss results because not enough of the good is exchanged.
B) deadweight loss results because too much of the good is exchanged.
C) consumer surplus and producer surplus both fall.
D) total surplus is higher than it would have been without the subsidy.

Free

Multiple Choice

Q 86Q 86

(Figure: Market for Peanuts II) If the government mandates a price floor of $750, the area of producer surplus changes from:
A) D + E + F to B + D + F.
B) F to B + C + D + F.
C) D + E + F to A + B + D + F.
D) B + C + D + F to B + D + F.

Free

Multiple Choice

Q 87Q 87

The supply and demand for solar panels are given by Q

^{S}= 5P - 5,000 and Q^{D}= 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. The total cost of the subsidy to the government is: A) $2,500,000.00. B) $7,800,000.00. C) $3.125,000.00. D) $4,500,000.00.Free

Multiple Choice

Q 88Q 88

Juanita purchased a Polar Express train set from Lionel Trains. She paid $240 for the set and received consumer surplus of $125. What was Juanita's willingness to pay for the train set?
A) $115
B) $240
C) $125
D) $365

Free

Multiple Choice

Q 89Q 89

Integral calculus can be used to determine:
A) consumer surplus but not producer surplus and deadweight loss.
B) producer surplus but not consumer surplus and deadweight loss.
C) consumer surplus and producer surplus but not deadweight loss.
D) consumer surplus, producer surplus, and deadweight loss.

Free

Multiple Choice

Q 90Q 90

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P Where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price in dollars for each unit. In this market, the equilibrium price is ____ and the equilibrium quantity is ____. A) $3,800; 1,200 B) $3,000; 2000 C) $1,200; 3,800 D) $2,000; 3,000Free

Multiple Choice

Q 91Q 91

(Figure: Market for Good X II) Before the subsidy, consumer surplus is ____ and after the subsidy, consumer surplus is ____.
A) $25.00; $16.00
B) $32.00; $50.00
C) $16.00; $25.00
D) $32.00; $30.00

Free

Multiple Choice

Q 92Q 92

(Figure: Market for Gallons I) Figure: Market for Gallons I shows the effect of a government subsidy. Which of the following statements is (are) TRUE? I. The area of the deadweight loss is C + D + E + G + H + I.
II) The subsidy causes producer surplus to increase from area F + G + H to area F + G + H + I.
III) The government's cost of the subsidy is area B + C + D + E + F + G + H + I.
IV) With the subsidy, consumer surplus is area A + B + C + D + E.
A) I and IV
B) I and III
C) III only
D) II, III, and IV

Free

Multiple Choice

Q 93Q 93

(Figure: Market for Grapefruits II) If the price per bag of grapefruit increases from $6 to $8, producer surplus increases by:
A) $130.
B) $50.
C) $90.
D) $40.

Free

Multiple Choice

Q 94Q 94

The demand and supply curves for a product are Q

^{D}= 50 - 0.5P and Q^{S}= 2.5P + 5, where P is the price per unit and Q measures millions of units. If the government levies a $1.20 per unit tax on buyers, what is the size of the deadweight loss? A) $300,000 B) $500,000 C) $800,000 D) $1.2 millionFree

Multiple Choice

Q 95Q 95

In the market for used cars, the demand and supply equations are given by Q

^{D}= 12,000 - 0.4P and Q^{S}= 0.1P + 5,000, where P is the price per car and Q measures the quantity of cars. What happens at a price floor of $20,000? A) There is a surplus of 7,000 cars. B) There is a surplus of 3,000 cars. C) Consumers want to buy 3,000 cars. D) Consumers want to buy 7,000 cars.Free

Multiple Choice

Q 96Q 96

(Figure: Market for Ammunition I) In the free market result, the producer surplus is:
A) A + B + E.
B) D.
C) C + D + F.
D) B + C + D.

Free

Multiple Choice

Q 97Q 97

Suppose that a maximum price (price ceiling) is legislated. To calculate consumer surplus:
A) integrate the area under the demand curve and above the free-market equilibrium price.
B) integrate the area under the demand curve and above the ceiling price between zero quantity and the free-market equilibrium quantity.
C) integrate the area under the demand curve and above the ceiling price between zero quantity and the quantity resulting from the price ceiling.
D) integrate the area under the demand curve and above the supply curve between zero quantity and the quantity resulting from the price ceiling.

Free

Multiple Choice

Q 98Q 98

When demand and supply are linear, consumer surplus is equal to:
A) the area between the demand curve and the price, out to the quantity that is exchanged.
B) the area between the supply curve and the price, out to the quantity that is exchanged.
C) the entire area between the demand curve and the horizontal axis.
D) the entire area below the demand curve, out to the quantity that is exchanged.

Free

Multiple Choice

Q 99Q 99

(Figure: Market for Ammunition I) Assuming the government imposes the quota of 200 boxes/week, the consumer surplus is:
A) A + B + E.
B) A.
C) C + D + F.
D) B + C + D.

Free

Multiple Choice

Q 100Q 100

(Figure: Market for Good X II) Before the subsidy, consumers pay price ____ and after the subsidy, consumers pay price ____.
A) $4.00; $10.00
B) $10.00; $4.00
C) $8.00; $6.00
D) $8.00; $10.00

Free

Multiple Choice

Q 101Q 101

(Figure: Price and Quantity II) The outward shift of the supply curve will cause producer surplus to increase from area _____ to area _____.
A) B; E + F
B) A + B; D + F
C) A + B + C; D + F
D) B + C + E; B + C + D + E + F

Free

Multiple Choice

Q 102Q 102

The demand and supply curves for Fuji apples are given by Q

^{D}= 50 - 6P and Q^{S}= 4P - 2, where P is price per bag and Q is in thousands of bags. What are consumer surplus and producer surplus at the equilibrium price? A) CS = $450; PS = $44,180 B) CS = $856,000; PS = $1,126,113 C) CS = $29,422; PS = $7,657 D) CS = $29,422; PS = $44,180Free

Multiple Choice

Q 103Q 103

(Figure: Market for Tickets II) Before the tax, producer surplus is ____ and after the tax, producer surplus is ____.
A) A + B + E; A
B) C + D + F; D
C) A + B + C + D +E + F; A + B + C + D
D) B + C; A + B + C + D

Free

Multiple Choice

Q 104Q 104

The market for plywood (a sheet of wood used in construction) is characterized by the following demand and supply equations: Q

^{D}= 800 - 10P and Q^{S}= 50P - 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. What is the size of the deadweight loss if the government imposes a price ceiling of $25 per sheet of plywood? A) $3,750 B) $4,418 C) $6,000 D) $8,900Free

Multiple Choice

Q 105Q 105

The government wants to transfer welfare from buyers to sellers by collecting a $1 tax on a good from buyers and subsidizing sellers $1 for each unit of the good sold. This policy will:
A) decrease the equilibrium price.
B) increase the equilibrium price.
C) decrease the equilibrium quantity.
D) increase the equilibrium quantity.

Free

Multiple Choice

Q 106Q 106

(Figure: Market for Good X II) Before the subsidy, sellers receive ____ and after the subsidy, seller receive ____.
A) 4.00; $10.00
B) $10.00; $4.00
C) $8.00; $6.00
D) $8.00; $10.00

Free

Multiple Choice

Q 107Q 107

Tavist allergy pills sell for $25 a box. Stefan, Brianna, and Tobias are willing to pay $33, $27, and $19, respectively, for a box of Tavist. What is the total consumer surplus for Stefan, Brianna, and Tobias?
A) $16
B) $10
C) $4
D) $60

Free

Multiple Choice

Q 108Q 108

(Figure: Market for Asparagus I) Suppose the government mandates a price ceiling of $3 per pound. Producer surplus decreases by:
A) $700.
B) $800.
C) $2,500.
D) $300.

Free

Multiple Choice

Q 109Q 109

In 2007, Hawaii began providing universal health care coverage to all children, but the Hawaiian government ended the program in just 7 months. Government officials claimed that most of the children who received government coverage dropped their private insurance to become eligible for the program. As a government official stated, "People who were already able to afford healthcare began to stop paying for it so they could get it for free." In this example, Hawaii's universal health care coverage caused:
A) crowding out.
B) expansion drift.
C) impure prevalence.
D) supplier-induced demand.

Free

Multiple Choice

Q 110Q 110

(Figure: Market For Ammunition I) The deadweight loss following the implementation of the quota of 200 boxes/week is:
A) E + F.
B) A.
C) C + D + F.
D) B + C + D.

Free

Multiple Choice

Q 111Q 111

To calculate consumer surplus:
A) integrate the area under the demand curve and above the equilibrium price.
B) integrate the area under the demand curve and above the supply curve.
C) take the derivative of quantity demanded with respect to price.
D) take the derivative of quantity demanded with respect to income.

Free

Multiple Choice

Q 112Q 112

Suppose the market for soda is represented by the supply and demand equations:
Q

^{S}= 35P - 39.75 and Q^{D}= 10.25 - 5P, where P is price per bottle and Q measures bottles per second. a. What are the values of consumer and producer surplus? b. If the government imposes a $0.50 tax per bottle, what are the values of consumer and producer surplus? c. What is the deadweight loss from the tax? How much revenue does the tax yield?Free

Essay

Q 113Q 113

Assume that the demand for disposable digital cameras is Q

^{D}= 6 - 0.33P. Supply is given as Q^{S}= 0.67P. The equilibrium price (P_{B}) and quantity (Q_{B}) once a tax of $1 per unit is applied will be _____. (Please round your answer to two decimal places.)Free

Essay

Q 114Q 114

Suppose that the demand curve for an advanced technology product for businesses is given by P = 10,000 - 4Q

^{3}and supply is P = 2,000 + 4Q^{3}. a. Find the equilibrium price and quantity. b. Calculate consumer surplus at the equilibrium price. c. Calculate producer surplus at the equilibrium price.Free

Essay

Q 115Q 115

(Figure: Market for Socks I) Refer to Figure: Market for Socks I to answer the following questions.
a. What is the area of consumer surplus before the increase in supply?
b. What is the area of producer surplus before the increase in supply?
c. What is the area of consumer surplus after the increase in supply?
d. What is the area of producer surplus after the increase in supply?
e. What is the area of the deadweight loss after the increase in supply?

Free

Essay

Q 116Q 116

Suppose that the market demand curve for residential water is given by
Q

^{D}= 10 - 2.25P and the market supply curve is given by Q^{S}= -10 + 2.75P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. Calculate the producer surplus at the equilibrium price.Free

Essay

Q 117Q 117

Suppose that the demand curve for brown rice is given by 50,000 - 3Q

^{2}and supply is P = -10,000 + 3Q^{2}. a. Find the equilibrium price and quantity. b. Calculate the consumer surplus at the equilibrium price. c. Calculate the producer surplus at the equilibrium price.Free

Essay

Q 118Q 118

The market for cigars is characterized by Q

^{D}= 10 - 0.25P and Q^{S}= 0.15P, where P is price per box of cigars and Q measures boxes per hour. a. What is the equilibrium price of cigars? b. Suppose the government taxes sellers $5 per box. What are the after-tax prices that buyers pay and sellers receive? c. Suppose the government taxes buyers rather than sellers $5 per box. What are the after-tax prices that buyers pay and sellers receive?Free

Essay

Q 119Q 119

(Figure: Price and Quantity VI) Refer to Figure: Price and Quantity VI to answer the following questions.
a. What is the level of consumer and producer surplus?
b. If consumers are willing to buy 10 more units of the good at any price, what happens to consumer and producer surplus?

Free

Essay

Q 120Q 120

In a small country, the demand and supply of kidneys are represented by Q

^{D}= 10,000 - 0.25P and Q^{S}= 0.5P + 4,000. The number of kidneys transplanted at a price floor of $10,000 would be _____.Free

Essay

Q 121Q 121

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price charged for each unit in dollars. Suppose that the government wants to make education more accessible and, therefore, passes a regulation that says no university can charge more than $1,000 per credit. Calculate the deadweight loss associated with this price ceiling.Free

Essay

Q 122Q 122

Suppose the demand and supply curves for shampoo are given by
Q

^{D}= 18 - 5P Q^{S}= -3 + 2P where Q^{D}is the quantity of shampoo demanded (in thousands of bottles), Q^{S}is the quantity supplied, and P is the price of shampoo (in dollars per bottle). Calculate producer surplus at the equilibrium price using calculus.Free

Essay

Q 123Q 123

The supply and demand for almonds are Q

^{D}= 80 - 10P and Q^{S}= 10P, where P is price per bag and Q measures hundreds of bags per day. a. What are the equilibrium price and quantity? b. Calculate consumer and producer surplus. c. Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds? If so, what size is it? d. Calculate consumer and producer surplus with the price floor. e. What is the size of the deadweight loss?Free

Essay

Q 124Q 124

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q

^{D}= 400 - 250P and Q^{S}= 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. a. How big is the shortage resulting from the price ceiling? b. What is the level of consumer surplus with the price ceiling? c. What is the level of producer surplus with the price ceiling? d. What is the value of the deadweight loss associated with the price ceiling?Free

Essay

Q 125Q 125

The supply and demand for solar panels are given by Q

^{S}= 5P - 5,000 and Q^{D}= 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. a. Calculate the price consumers pay before and after the subsidy. b. Calculate the price producers receive before and after the subsidy. c. How much does the subsidy program cost the government?Free

Essay

Q 126Q 126

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q

^{D}= 10 - 2.25P and the market supply curve is given by Q^{S}= -10 + 2.75P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. a. How will the quota influence the market price of water? The quantity of water sold? b. Calculate the deadweight loss resulting from the quota.Free

Essay

Q 127Q 127

Assume that the demand for selfie sticks (a device that helps a person take their own picture) is Q

^{D}= 6 - 0.5P. Supply is given as Q^{S}= P. The deadweight loss due to a quota of two sticks is $_____.Free

Essay

Q 128Q 128

The supply and demand for 9-volt batteries are given by Q

^{D}= 230 - 10P and Q^{S}= 30P - 10, where P is the price per four-pack and Q measures the number of four-packs. a. What are the levels of consumer and producer surplus at the equilibrium price? b. Suppose that a hurricane causes widespread blackouts, shifting the demand curve for 9-volt batteries outward, with the new demand curve equal to Q^{D}= 690 - 10P. If the government sets a price ceiling equal to the pre-hurricane price (the old equilibrium price), what is the level of consumer surplus? c. If the government did not impose the price ceiling, what would consumer surplus equal? Are consumers better off with the price ceiling?Free

Essay

Q 129Q 129

The supply curve for pizza on the local college campus is represented by Q

^{S}= -2,500 + 210P. At a price of $14, the total producer surplus for the college campus would be $_____.Free

Essay

Q 130Q 130

(Figure: Market for Boxes I) Suppose the government sets a price ceiling of $10.
a. What are the values of consumer surplus before and after the price change?
b. What are the values of producer surplus before and after the price change?
c. What is the value of the deadweight loss?

Free

Essay

Q 131Q 131

Many states have minimum price laws for cigarettes. Assume that the demand equation for cigarettes is Q

^{D}= 4,000 - 300P, while the supply equation is Q^{S}= -1,000 + 200P, with quantity in thousands of packs. Assume that state governments replace the $12 price floors with a tax of $5 per pack, resulting in the same number of packs sold as under the price floor. The price floor would lead to a deadweight loss of $_____; the $5 tax would lead to a deadweight loss of $_____.Free

Essay

Q 132Q 132

Many U.S. states have minimum price laws for cigarettes. Assume that the demand equation for cigarettes is Q

^{D}= 4,000 - 300P and the supply equation is Q^{S}= -1,000 + 200P, with quantity in thousands of packs. The number of cigarette packs actually sold when a binding price floor of $12 is applied to this market will be _____.Free

Essay

Q 133Q 133

The supply and demand for squash are given by Q

^{D}= 200,000 - 50,000P and Q^{S}= 90,000P - 80,000, where P is price per pound and Q measures pounds of squash. a. What is the level of consumer surplus at the equilibrium price? b. What is the level of producer surplus at the equilibrium price?Free

Essay

Q 134Q 134

The demand curve for pizza on the college campus is represented by Q

^{D}= 1,000 - 40P. At a price of $14, the total consumer surplus for the college campus would be $_____.Free

Essay

Q 135Q 135

Answer the following questions regarding taxes.
a. Suppose the demand for insulin pumps is Q

^{D}= 2,000 and the supply of insulin pumps is Q^{S}= 0.5P - 1,000. What is the price that sellers receive per pump? Suppose the government imposes a tax of $400 per pump on sellers. What after-tax price per pump do sellers receive? b. In the market for organic fruit, the elasticity of supply is 0.75 and the elasticity of demand is -1.25. If there is a tax of $2 per unit on organic fruit, what share of the tax is paid by buyers and what share is paid by sellers?Free

Essay

Free

Essay

Q 137Q 137

The supply and demand for organic peanut butter are Q

^{D}= 70 - 5P and Q^{S}= 5P, where P is price per jar and Q is in hundreds of jars per day. The government decides to impose either a $1 supply subsidy or a price floor equal to $7.50. The producer surplus associated with the price floor would be _____.Free

Essay

Q 138Q 138

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price in dollars for each unit. Calculate the producer surplus at the equilibrium price.Free

Essay

Q 139Q 139

(Figure: Health Care Visits I) In Figure: Health Care Visits I, S

_{priv}represents the supply of health care visits at private clinics and S_{total}represents the total supply of health care visits at private and government-operated clinics. a. How many health care visits are provided by government-operated clinics? b. Without government-operated clinics, how many health care visits are provided by the private sector? c. With government-operated clinics, how many health care visits are provided by the private sector? d. Does the presence of government-operated clinics cause crowding out? Explain.Free

Essay

Q 140Q 140

Suppose the demand and supply curves for shampoo are given by
Q

^{D}= 18 - 5P Q^{S}= -3 + 2P where Q^{D}is the quantity of shampoo demanded (in thousands of bottles), Q^{S}is the quantity supplied, and P is the price of shampoo (in dollars per bottle). a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus at the equilibrium price.Free

Essay

Q 141Q 141

(Figure: Price and Quantity VII) Refer to Figure: Price and Quantity VII to answer the following questions.
a. What is the area of consumer surplus before the increase in demand?
b. What is the area of producer surplus before the increase in demand?
c. What is the area of consumer surplus after the increase in demand?
d. What is the area of producer surplus after the increase in demand?
e. What is the area of the deadweight loss after the increase in demand?

Free

Essay

Q 142Q 142

Suppose that the market demand curve for residential water is given by
Q

^{D}= 10 - 2.25P and the market supply curve is given by Q^{S}= -10 + 2.75P where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus at the equilibrium price.Free

Essay

Q 143Q 143

(Figure: Price and Quantity V) Answer the following questions.
a. For demand curve D

_{1}, what is the level of consumer surplus at a price of $40? b. For demand curve D_{2}, consumer surplus is $6,400 at a price of $40. What is the demand choke price?Free

Essay

Q 144Q 144

Suppose the demand and supply curves for units of university credits are given by
Q

^{D}= 5,000 - P Q^{S}= -1,000 + 4P where Q^{D}is the quantity of credits demanded, Q^{S}is the quantity supplied, and P is the price in dollars for each unit. a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus at the equilibrium price.Free

Essay

Q 145Q 145

The market for cookies is represented by the following supply and demand conditions:
Q

^{D}= 1,000 - 200P and Q^{S}= 400P - 200, where P is price per box of cookies and Q measures boxes per day. a. Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer. b. Suppose the government places a quota of 500 boxes per day on cookies. Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer. c. Calculate consumer surplus before and after the quota. d. Calculate producer surplus before and after the quota. e. Calculate the deadweight loss from the quota.Free

Essay

Q 146Q 146

The first snow blower was sold in 1927. How did the sale of the snow blower affect the demand curve and the consumer surplus for snow shovels?

Free

Essay