Question

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true. 35. If the government wants to raise tax revenue and shift most of the tax burden to the sellers, it would impose a tax on a good with a: a. steep inelastic) demand curve and a flat (elastic) supply curve. b. steep (inelastic) demand curve and steep inelastic) demand curve. c. flat (elastic) demand curve and a steep (inelastic) supply curve. d. flat (elastic) demand curve and a flat (elastic) supply curve. Exhibit 6-1 Total utility for good X Total utility (utils) Quantity consumed per day 0 0 80 1 120 2 148160155 3 4 5 I _ 36. As shown in Exhibit 6-1, the law of diminishing marginal utility is first observed at the: a. third unit. b. first unit. c. fourth unit. d. second unit. e. fifth unit.

Answer 1

(d) if the quantity supplied is 6 million pounds of ground beef per year, the result is Overproduchin, inefficiency, and deadweight loss, therefore, the answer is call of the above are ture true. (35.) when the seller is bearing most of the dark burden, then the supply curve is is more inelustic (sleep) than demand curve. Hence, flut (elastic) demand curve and a steep Cinelustic) supply curre. 136.d) the law of diminising I Quantity TU MU Marginal utility is first l o o - observed at the second . I 80 80 unit, when mu full . 2 120 40 lug from so to 40. 28 -dmsm I 1 160 155 12 - 5