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

Figure 4-4 -Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $9

You are given the following market data for Venus automobiles in Saturnia. Demand: P = 200 - 0.25Q Supply: P = 130 + 0.10Q where P = Price and Q = Quantity. a.Calculate the equilibrium price and quantity. b.Calculate the consumer surplus in this market. c.Calculate the producer surplus in this market.

Figure 4-5 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?

If the quantity of fishing poles demanded is represented by the equation Q_D = 60 - P then the corresponding price of fishing poles is represented by the equation

Paul goes to Sportsmart to buy a new tennis racquet.He is willing to pay $200 for a new racquet,but buys one on sale for $125.Paul's consumer surplus from the purchase is

If the price of hairspray is represented by equation P = 10 - 0.2 Q_D,then the corresponding quantity of hairspray demanded is represented by the equation

The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called

Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service.The economists found that

When Congress passed a law that imposed a tax designed to fund its Social Security and Medicare programs it wanted employers and workers to share the burden of the tax equally.Most economists who have studied the incidence of the tax have concluded

Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 4-8.What is the size of the unit tax?

Figure 4-1 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?

Table 4-2 -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 ticket falls from $25 to $10

Table 4-2 -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 $10

Table 4-4 Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley. -Refer to Table 4-4.If a minimum wage of $12.50 an hour is mandated,what is the quantity of labor demanded?

Table 4-1 -Refer to Table 4-1.The table above lists the highest prices three consumers,Tom,Dick and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars

Figure 4-4 -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?

Which of the following statements best describes the concept of consumer surplus?

Figure 4-12 -Refer to Figure 4-12.The figure above represents demand and supply in the market for gasoline.Use the diagram to answer the following questions. a.How much is the government tax on each gallon of gasoline? b.What portion of the unit tax is paid by consumers? c.What portion of the unit tax is paid by producers? d.What is the quantity sold after the imposition of the tax? e.What is the after-tax revenue per gallon received by producers? f.What is the total tax revenue collected by the government? g.What is the value of the excess burden of the tax? h.Is this gasoline tax efficient?

Table 4-4 Table 4-4 shows the demand and supply schedules for labor market in the city of Pixley. -Refer to Table 4-4.Suppose that the quantity of labor demanded increases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

The following equations represent the demand and supply for bottles of nail polish. Q_D = 25 - P Q_S = -15 + 3P What is the equilibrium price (P)and quantity (Q - in thousands)of bottles of nail polish?