Which of the following statements is true for markets

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Chapter 7 / Exercise 1
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35. Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward? a. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss falls initially, but eventually it begins to rise. b. As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss continually rises. c. As the size of the tax increases, tax revenue continually rises and deadweight loss continually falls. d. As the size of the tax increases, tax revenue and deadweight loss rise initially, but both eventually begin to fall.
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Chapter 7 / Exercise 1
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____ 36. Total surplus a. can be used to measure a market’s efficiency.b. is the to value to buyers minus the cost to sellers. c. is the sum of consumer and producer surplus. d. All of the above are correct. ____ 37. If the government removes a binding price ceiling from a market, then the price paid by buyers will a. decrease, and the quantity sold in the market will decrease. b. decrease, and the quantity sold in the market will increase. c. increase, and the quantity sold in the market will decrease. d. increase, and the quantity sold in the market will increase. ____ 38. Rent control a. is the most efficient way to allocate scarce housing resources. b. serves as an example of how a social problem can be alleviated or even solved by government policies. c. is regarded by most economists as an efficient way of helping the poor. d. serves as an example of a price ceiling. Table 7-1BuyerWillingness To PayLori $50.00 Audrey $30.00 Zach $20.00 Calvin $10.00 ____ 39. Refer to Table 7-1. If the price of the product is $18, then the total consumer surplus is a. $38. b. $72. c. $42. d. $46. Figure 7-8 SupplyP1P2Q1Q2ABCDGHQuantityPrice
____ 40. Refer to Figure 7-8. Which area represents the increasein producer surplus when the price rises from P1 to P2?
____ 41. Consumer surplus
____ 42. The price of sugar that prevails in international markets is called the

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