b 6 and consumer surplus with the tax is 450 c 10 and consumer surplus with the

B 6 and consumer surplus with the tax is 450 c 10 and

This preview shows page 17 - 22 out of 83 pages.

b. $6, and consumer surplus with the tax is $4.50. c. $10, and consumer surplus with the tax is $1.50. d. $10, and consumer surplus with the tax is $4.50. ANSWER: a 17. Refer to Figure 8-2. Producer surplus without the tax is a. $4, and producer surplus with the tax is $1. b. $4, and producer surplus with the tax is $3. c. $10, and producer surplus with the tax is $1. d. $10, and producer surplus with the tax is $3. ANSWER: a 18. Refer to Figure 8-2. Total surplus without the tax is a. $10, and total surplus with the tax is $2.50. b. $10, and total surplus with the tax is $7.50. c. $20, and total surplus with the tax is $2.50. d. $20, and total surplus with the tax is $7.50. ANSWER: b 19. Refer to Figure 8-2. The loss of consumer surplus associated with some buyers dropping out of the market as a result of the tax is a. $0. b. $1.50. c. $3. d. $4.50.
Image of page 17
ANSWER: b 20. Refer to Figure 8-2. The loss of consumer surplus for those buyers of the good who continue to buy it after the tax is imposed is a. $0. b. $1.50. c. $3. d. $4.50. ANSWER: c 21. Refer to Figure 8-2. The loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is a. $0. b. $1. c. $2. d. $3. ANSWER: b 22. Refer to Figure 8-2. The loss of producer surplus for those sellers of the good who continue to sell it after the tax is imposed is a. $0. b. $1. c. $2. d. $3. ANSWER: c Figure 8-6 The vertical distance between points A and B represents a tax in the market.
Image of page 18
23. Refer to Figure 8-6 . Without a tax, the equilibrium price and quantity are a. $16 and 300. b. $10 and 600. c. $10 and 300. d. $6 and 300. ANSWER: b 24. Refer to Figure 8-6 . Without a tax, consumer surplus in this market is a. $1,500. b. $2,400. c. $3,000. d. $3,600. ANSWER: d 25. Refer to Figure 8-6 . Without a tax, producer surplus in this market is a. $1,500. b. $2,400. c. $3,000. d. $3,600. ANSWER: b 26. Refer to Figure 8-6 . Without a tax, total surplus in this market is a. $3,000. b. $4,800. c. $6,000. d. $7,200.
Image of page 19
ANSWER: c 27. Refer to Figure 8-6 . When the tax is imposed in this market, the price buyers effectively pay is a. $4. b. $6. c. $10. d. $16. ANSWER: d 28.Refer to Figure 8-6. When the tax is imposed in this market, buyers effectively pay what amount of the $10 tax? a. $0 b. $4 c. $6 d. $10 ANSWER: c 29.Refer to Figure 8-6. When the tax is imposed in this market, sellers effectively pay what amount of the $10 tax? a. $0 b. $4 c. $6 d. $10 ANSWER: b 30. Refer to Figure 8-6 . When the tax is imposed in this market, the price sellers effectively receive is a. $4. b. $6. c. $10. d. $16. ANSWER: b 31. Refer to Figure 8-6 . When the tax is imposed in this market, consumer surplus is a. $600. b. $900. c. $1,500. d. $3,000.
Image of page 20
ANSWER: b 32. Refer to Figure 8-6 . When the tax is imposed in this market, producer surplus is a. $450. b. $600. c. $900. d. $1,500. ANSWER: b 33. Refer to Figure 8-6 . When the tax is placed on this good, the quantity sold a. is 600, and buyers effectively pay $10. b. is 300, and buyers effectively pay $10. c. is 600, and buyers effectively pay $16. d. is 300, and buyers effectively pay $16. ANSWER: d 35. Refer to Figure 8-6 . When the government imposes the tax in this market, tax revenue is a. $600.
Image of page 21
Image of page 22

You've reached the end of your free preview.

Want to read all 83 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture