3. The area (L + M + Y) represents producers surplus before the tax. Before tax equilibrium price is P'' and producers surplus is the area below the price and above the supply curve.
Answer: option D
4. At new quantity Q2, buyers pay P2 but sellers receive P8. Producers surplus is the area below the price sellers receive and above the supply curve. New producers surplus = (1/2)*(P8 - 0)*Q2
Answer: option B
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...
QUESTION 7 Figure: The vertical distance between points A and C represents a tax in the market. T Price Supply 1000 900+ 800 700+ 600 + 500+ 400 300 C 200+ 100 Demand 10 20 30 40 50 60 70 80 90 100110 Quantty Refer to Figure. After the taxes a. there will be a loss to the consumers of the amount $4,000. Б. there will be a loss to the consumers of the amount S6,000. Cthere will be a...
Question 3 1 pts Figure 8-1 1 Price Supply KI | Lly Demand Quantity Refer to Figure 8-1. Suppose the government imposes a tax of P'P. The area measured by I+Y represents the deadweight loss due to the tax. loss in consumer surplus due to the tax. loss in producer surplus due to the tax. total surplus before the tax.
Figure 1 Price (dollars per month) $2.300 Supply 2.000 8 8 Demand 200 300 500 Quantity (apartments) Refer to Figure 1. What is the value of producer surplus at the market price of $2,000? OA) $240,000 OB) $0 OC) $30,000 OD) $45,000
Figure 1 Price (dollars per month) $2.300 Supply 2.000 Demand 200 300 500 Quantity (apartments) Refer to Figure 1. What is the value of consumer surplus at the market equilibrium price? OA) $0 OB) $120,000 OC) $175,000 OD) $135,000
The figure to the right shows the U.S. demand and supply for leather footwear. Price $50 Under autarky, the consumer surplus is US. Supply O A. $195. OB. $260. O C. $300. O D. $555. World price U.S. Demand 10 15 20 Quantity of leather footwear The figure shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Price (dollars per month) $2,500 Supply What is the value of the portion of...
Refer to Figure: Supply and Demand Suppose the government imposes a tax of $6 on consumers. Which statement is correct? a. Consumers will pay $16, the producer will receive $10, and total surplus decreases by $6. b. Consumers will pay $14, the producer will receive $8, and total surplus decreases by $6. c. Consumers will pay $14, the producer will receive $8, and total surplus decreases by $24. d. Consumers will pay $16, the producer will receive $10, and total...
Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to P2, what area represents the increase in producer surplus? OA. OA+B+C. ОА+В. OG.
Question 2 1 pts Figure 8-1 1 Price Supply Demand Quantity Refer to Figure 8-1. Suppose the government imposes a tax of p'-P". The consumer surplus after the tax is measured by the area J+K+1 OJ OM L+M+Y
Figure 9-11 Price Domestic Supply World Price Domestic Demand Quantity Refer to Figure 9.11. Consumer surplus in this market before trade is O a. A Ob. B+C O c. A+B+D. O d.c. Supply Demand Refer to Figure 7-21. Which area represents consumer surplus when the price is P1? O a. A O b.B ос. С To a.D
QUESTION 12 Figure: The graph below shows a demand curve and four supply curves 1 Price Refer to Figure. If a tax is imposed in the above market then which supply curve will have highest deadweight lossi a. S2 Oc. SA. d.53. QUESTION 18 When boats are taxed and sellers of boats are required to pay the tax to the government, a. there is a movement downward and to the right along the demand curve for boats. Ob the quantity...