spr07-3320 I-a

spr07-3320 I-a - Dr. Dakshina De Silva ECON 3320 (Spring...

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Dr. Dakshina De Silva Name ………………………. ECON 3320 (Spring 2007- Exam # 1) ID# ………………………. Form-1 Suppose demand and supply equations are given by: Q d = 600 – 3 P x and Q S = 3 P x 1) Suppose a $ 100 excise tax is imposed on the good. The new price received by the seller is a) 50 b) 60 c) 70 d) 80 Answer: A 2) After tax, new price paid by the buyers is a) 60 b) 100 c) 150 d) 160 Answer: C 3) The quantity sold after taxes is a) 150 b)180 c)200 d) 480 Answer: A 4) The total tax revenue is a) 10,000 b) 15,000 c) 18,000 d) 20,000 Answer: B 5) The buyers’ share of tax is a) 0.25 b) 0.5 c) 0.75 d) 0.8 Answer: B
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6) In a competitive market, the market demand is Q d = 60 - 6P and the market supply is s = 4P. A price ceiling of $3 will result in a) A shortage of 18 units. b) A shortage of 30 units. c) A surplus of 30 units. d) A surplus of 12 units. e) neither a shortage nor a surplus. Answer: B 7) In a competitive market, the market demand is Q d = 60 - 6P and the market supply is Q s = 4P. The full economic price (How much a buyer willing to pay) under a price ceiling of $3 is a) 6. b) 7. c) 8. d) 9. Answer: C 8) Suppose the demand for good X is given by Q d x = 10 + α x P x + α y P y + α M M. If α M is negative, then good y is: a) a normal good. b) an inferior good. c) a complement. d) a substitute. Answer: B 9) The supply function for good X is given by Q x s = 1,000 + P X - 5 P Y - 2P W , where P X is the price of X, P Y is the price of good Y and P W is the price of input W. If the price of input W increases by $10, then the supply of good X a) will increase by 10 units. b) will increase by 20 units. c) will decrease by 10 units.
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spr07-3320 I-a - Dr. Dakshina De Silva ECON 3320 (Spring...

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