Exam 4: Economic Efficiency, Government Price Setting, and Taxes

Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. -Refer to Figure 4-5. What is the value of producer surplus after the imposition of the ceiling?

Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. -Refer to Table 4-4. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?

If Uber is unsuccessful in fighting the cap on the number of cars driving for ride-hailing companies in New York City, this will have the potential to raise the equilibrium price in this market. This would have a tendency to

Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. -Refer to Table 4-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labor supplied?

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 3 burritos?

-Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $18,

The graph below represents the market for walnuts. Identify the values of the marginal benefit and the marginal cost at the output levels of 2,000 pounds, 4,000 pounds, and 6,000 pounds. At each of these output levels, state whether output is inefficiently high, inefficiently low, or economically efficient.

Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. -Refer to Table 4-4. If a minimum wage of $11.50 is mandated, there will be a

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. If the market price is $2.00, what is Arnold's consumer surplus?

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. If the market price is $1.00, what is Arnold's consumer surplus?

? -Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the price of cowboy hats decreases from $38 to $30,

The graph below represents the market for lychee nuts. The equilibrium price is $7.00 per bushel, but the market price is $5.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $5.00.

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. If the market price is $1.50, what is the consumer surplus on the second burrito?

-Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. Arnold's marginal benefit from consuming the second burrito is

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. Arnold's marginal benefit from consuming the third burrito is

-Refer to Figure 4-9. Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? For demand curve D1

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the first burrito?

Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1. If the market price is $1.50, what is the consumer surplus on the first burrito?

-Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3, what changes in the market would result in an economically efficient output?