Consider a market with the following supply (Qs) and demand (Qd) curves:
Qd= 200-2p
Qs=25
At the market equilibrium, what is the value of consumer surplus?
- 0
- 156.25
- 625
- 3750
- Infinite
2. Consider a market with the following supply (Qs) and demand (Qd) curves:
Qd= 12-0.2p
Qs=p
At the market equilibrium, what is the value of total surplus?
- 10
- 50
- 100
- 200
- 300
3. Consider a market with the following supply (Qs) and demand (Qd) curves:
Qd= 200-2p
Qs=25
Suppose the government imposes a tax of 15 dollars for each unit sold on buyers. For each unit sold, what is the amount received and kept by producers in the post tax equilibrium?
- 170
- 150
- 145
- 25
- None of the above
4. Consider a market with the following supply (Q
s) and demand (Q
d) curves:
Qd= 200-2p
Qs=25
Suppose the government imposes on the buyer a tax of 15 dollars for each unit sold. What is the total tax revenue raised and deadweight loss following the imposition of the tax?
- Revenue = 15, DWL=0
- Revenue = 15, DWL = 375
- Revenue = 375, DWL = 0
- Revenue = 375, DWL = 375
- None of the above
5. Consider a labour market in which the supply curve is given by: w= 100 + L
s (where w is the wage rate and L
s is the quantity of labour supplied). Further, assume that the demand for labour is given by w = 400 – 2L
d (where w is the wage rate and L
dis the quantity of labour demanded). Assume that the government imposes a minimum wage of 250. In this case the resulting deadweight loss is equal to:
- 0
- 312.5
- 625
- 937.5
- None of the above
6. Consider a labour market in which the supply curve is given by: w= 100 + L
s (where w is the wage rate and L
s is the quantity of labour supplied). Further, assume that the demand for labour is given by w = 400 – 2L
d (where w is the wage rate and L
d?is the quantity of labour demanded). Assume that the government imposes a minimum wage of 150. Following the imposition of the minimum wage consumer surplus is equal to:
a. 0
b.5625
c. 10000
d. 15000
e. none of the above
7 Assume that the demand curve and supply curves for computer tablets is given by the following:
Qd= XXXXXXXXXX2p
Qs= 4p - 200
If the government imposes a tax of 60 that must be paid by the seller the total amount of tax revenue raised is equal to:
- 0
- 60
- 6520
- 391200
- 396000
8. The supply curve of LNG, a substitute for petrol is given by the following: p=100+Q
s.The demand curve for LNG is given by p=120-3Q
d. Assume that the government has decided that one way to reduce greenhouse gas emissions is to encourage the use of ethanol. As a result, the government provides a subsidy of 40 to suppliers. Following the imposition of the subsidy, what is the new equilibrium price?
a. 40
b. 45
c. 65
d. 75
e. 105