Refer to Exhibit 20 6 Suppose the three equilibrium quantities are 700 800 and

Refer to exhibit 20 6 suppose the three equilibrium

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131. Refer to Exhibit 20-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two other equilibrium prices are $2.20 and $2.75. What is the change in total revenue when a per-unit tax shifts S1to S2, given that D2is the relevant demand curve?a. $260b. -$260c. $900d. $700e. -$200ANSWER: bPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ApplicationExhibit 20-7
132. Refer to Exhibit 20-7. Which of the graphs shows a perfectly elastic demand curve?133. Refer to Exhibit 20-7. Which of the graphs shows a perfectly inelastic demand curve?134. Refer to Exhibit 20-7. If the government is contemplating imposing a per-unit tax and it wants the tax to have as small a negative effect on consumers as possible, it should choose a good for which the market is depicted on graph
135. Refer to Exhibit 20-7. If the government wants to impose a per-unit tax in order to raise revenues, which of the depicted markets should it choose in order to maximize tax revenues?a. (1)b. (2)c. (3)d. (4)ANSWER: aPOINTS: 1DIFFICULTY: ModerateNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: Application136. Refer to Exhibit 20-7. As a producer, if you had a choice, which of the depicted markets would you operate in?137. The price elasticity of demand for a given good is 2.3. This implies that if price

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