# Consumer surplus increases from 1899 to 230025 and

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Chapter 23 / Exercise 2
Exploring Economics
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Consumer surplus increases from \$1,899 to \$2,300.25, and producer surplus increases from \$1,500.40 to \$1,910.05.
Use the following to answer question 16: Figure 3.8 16. (Figure 3.8) At a price ceiling of \$2, what is the amount of surplus transferred from producers to consumers?
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Chapter 23 / Exercise 2
Exploring Economics
Sexton Expert Verified
Use the following to answer question 17: Figure 3.12 17. (Figure 3.12) What is the effect of the quota on consumer surplus?
Page 6 Use the following to answer question 18: Figure 3.15
18. (Figure 3.15) Which of the following statements is TRUE? I. Consumer surplus after the tax is area A + II. Producer surplus before the tax is D + E + F. III. Consumer surplus before the tax is A + C + E. IV. The size of the tax is \$0.50, raising \$170,000 in tax revenue. B .
19. The price elasticity of demand is 1.25, and the share of the tax borne by consumers is 0.80. What is the price elasticity of supply? A) B) C) 1.56 D) 1. 6 5
20. Suppose the government is considering changing payroll taxes. Which of the following tax laws would be most beneficial for workers (e.g., provide the highest after-tax wage)?
21. If the government subsidizes a product, what is the relationship between the price that buyers pay ( P B ) and the price that sellers receive ( P S )? S P S
22. Justin purchased a Polar Express train set from Lionel Trains. He paid \$240 for the set and received consumer surplus of \$125. What was Justin's willingness to pay for the train set?
Page 7
23. Kyle's utility function is U = 4 X + 3.7 Y , where X is units of good X and Y is units of good Y . What is the marginal utility of good X ? A) 4 X + 3.7 B) C) 0.3 D) U /4 4 X
24. Which assumption(s) allow(s) us to draw indifference curves?
Page 8 Use the following to answer question 25: Figure 4.5
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