HW3_dueOct20 - Due date for HW3 is at the beginning of the class on Wednesday Oct 20th Please use word processor for the short answer questions in

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Due date for HW3 is at the beginning of the class on Wednesday, Oct. 20 th . Please use word processor for the short answer questions in Part II to type out your answers. You can draw the graphs by hand . Please staple your work. You can work in groups and you are encouraged to do so. However, you need to hand in your own work for credits. Please write down the names of your group members. Not following the rules will result in point deduction as a penalty. HW3 (Chapter 4, Chapter 5 and Chapter 6 - Price Ceiling, Price Floor and Tax Incidence) Part I. Multiple Choice Questions – Choose the best answer. (40%) 1. Nick can purchase each milkshake for $2. For the first milkshake purchased Nick is willing to pay $4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the value of Nick’s consumer surplus? A. $2 B. $9 C. $3 D. $10 2. In the above figure, if the market price is $100 per ton, then the firm’s producer surplus on the second ton of wheat is
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This note was uploaded on 02/13/2012 for the course ECO 201 taught by Professor Dunlevy during the Fall '08 term at Miami University.

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HW3_dueOct20 - Due date for HW3 is at the beginning of the class on Wednesday Oct 20th Please use word processor for the short answer questions in

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