Economics 1B Quiz 3 S2011

Economics 1B Quiz 3 S2011 - Economics 1B Quiz #3 Key...

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Economics 1B Quiz #3 Key Department of Economics Professor Siegler UC Davis Spring 2011 1) Consumer surplus in a perfectly competitive market for a product would be equal to ________ if the market price was zero. A) zero B) the area between the supply curve and the demand curve C) the area above the supply curve D) the area under the demand curve 2) What is the value of producer surplus at a price of $18? A) $240 B) $300 C) $340 D) $720 3) What is the value of the deadweight loss at a price of $18? A) $100 B) $200 C) $660 D) $1,040
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4) What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling of $1,000 per month as compared to the perfectly competitive outcome? A) $40,000 B) $100,000 C) $125,000 D) $140,000 5) What is the value of the deadweight loss after the imposition of the rent ceiling of $1,000 per month? A) $50,000 B) $125,000 C) $175,000 D) $260,000 Answer: A
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6) What is the size of the unit tax? A) $2 B) $5 C) $7 D) $12 7) How much of the tax is paid by buyers? A) $2
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This note was uploaded on 02/07/2012 for the course ECON 1b taught by Professor Sheffrin during the Spring '07 term at UC Davis.

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Economics 1B Quiz 3 S2011 - Economics 1B Quiz #3 Key...

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