Question

29. When a tax is placed on the buyers of coffee, the buyers bear the entire burden of the tax b. sellers bear the entire burden of the tax burden of the tax will be always be equally divided between the buyers and the sellers d. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal 30. the government wants to reduce the amount of people driving. It should impose a taxon a buyers of gasoline b. sellers of gasoline. c either buyers or sellers of gasoline. d. whichever side of the market is less elastic 31. A consumer's willingness to pay directly measures a consumer surplus b. how much a buyer values a good. c. the cost of a good to the buyer. d. the extent to which advertising and other external forces have influenced the consumer's preferences 32. Consumer surplus a. is the amount a buyer pays for a good minus the amount the buyer is willing to pay for it. b. is represented on a supply-demand graph by the area below the price and above the demand curve. c measures the benefit sellers receive from participating in a market. d measures the benefit buyers receive from participating in a market. 33. In a market, the marginal seller is the seller .. whose cost is lower than that of all other sellers and potential sellers. whose cost is higher than that of all other sellers and potential sellers. who is willing to sell exactly one unit of the good. d. who would be the first to leave the market if the price were any lower. 24 Producer Surplus is a. measured using the demand curve for a good. b. always a negative number for sellers in a competitive market. the amount a seller is paid minus the cost of production d the opportunity cost of production minus the cost of producing goods that go unsold 35. Martin sells a shirt for $40, and his producer surplus from the sale is $8, his cost must have been a $8 b. $32 L $40 d $48 36. Total surplus is a. the total cost to sellers of providing the end minus the total value of the good to buyers. b. the total value of the pood to buvers minus the cost to sellers of providing the good c. the difference between consumer Surplus and sellers' cost. d. always smaller than producer surplus.

please answer these. Thank you.

Answer 1

29 d. The price paid by buyers will be higher and price received by sellers will be lower.

30 c. It should impose on either buyers or sellers of gasoline.

31. b. Consumers willingness to pay is the value of the good to the buyers.

32. a. It is the area above the equilibrium price and below the demand curve.

33. d. The sellers cost of production will equal the selling price and he will be the first seller to exit the market if the selling price falls.

34. C. It is the area below the equilibrium price and above supply curve.

35. b. $32. Producer surplus = Selling price minus cost of production.

36. b. The total surplus is the value to the buyers minus the cost to the sellers.