Suppose that the equilibrium price in the market for

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Principles of Economics
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Chapter 6 / Exercise 2
Principles of Economics
Mankiw
Expert Verified
85.Suppose that the equilibrium price in the market for widgets is $5. If a law increased the minimum legal price for widgets to $6, a. the resulting increase in consumer surplus would be larger than any possible loss of producer surplus. b. the resulting increase in consumer surplus would be smaller than any possible loss of producer surplus. c. any possible increase in producer surplus would be larger than the loss of consumer surplus. d. any possible increase in producer surplus would be smaller than the loss of consumer surplus.*
Figure 7-2386.Refer to Figure 7-23. Which of the following statements is correct? DemandSupplyQ2Q3Q4Q1QuantityPrice
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Principles of Economics
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Chapter 6 / Exercise 2
Principles of Economics
Mankiw
Expert Verified
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87.Inefficiency exists in an economy when a good is
88.Inefficiency exists in an economy when a good is
89.The Surgeon General announces that eating chocolate increases tooth decay. As a result, the equilibrium price of chocolate a. increases, and producer surplus increases. b. increases, and producer surplus decreases. c. decreases, and producer surplus increases. d. decreases, and producer surplus decreases.*
90.Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market
Chapter 8 Figure 8-5Suppose that the government imposes a tax of P3 - P1. 91.Refer to Figure 8-5. The equilibrium price before the tax is imposed is DemandSupplyQ1Q2P1P2P3ABDFGCHIP4QuantityPrice
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92.Refer to Figure 8-5. The price that buyers effectively pay after the tax is imposed is
93.Refer to Figure 8-5. The price that sellers effectively receive after the tax is imposed is a. P1.* b. P2. c. P3. d. P4.
94.Refer to Figure 8-5. The tax is levied on
95.Refer to Figure 8-5. Consumer surplus before the tax was levied is represented by area
96.Refer to Figure 8-5. Producer surplus before the tax was levied is represented by area
97.Refer to Figure 8-5. After the tax is levied, consumer surplus is represented by area a. A.* b. A+B+C. c. D+H+F. d. F.
98.Refer to Figure 8-5. After the tax is levied, producer surplus is represented by area
99.Refer to Figure 8-5. The tax causes a reduction in consumer surplus that is represented by area
Refer to Figure 8-5. The benefit to the government is measured by
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