Question

Skipped F WE--- According to the graph shown, if the market goes from equilibrium to having its price set at $10 then: MultipPre (5) Skipped 10 20 30 40 50 60 70 80 90 Quantity According to the graph shown, if the market goes from equilibrium to haviSkipped 7 15 30 If a price ceiling of $8 were placed in the market in the graph shown: 1 Multiple Choice 0 some surplus is trA B - D. F Skipped ΕΙ 7 15 30 After a price ceiling of $8 is placed on the market in the graph shown, which area represents pBD G. Skipped 20 47 57 After a price floor of $23 is placed on the market in the graph shown, which area represents consumerSkipped 31 Suppose a tax on sellers has been imposed in the graph shown. What is the total tax paid per unit of the good? Mul

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Answer #1

12.Ans: consumer surplus decreases by ( B + C)

Explanation:

At equilibrium price, Consumer surplus = A + B + C

At new price $10 , New consumer surplus = A

So decrease in consumer surplus by = ( A + B + C ) - A =  B + C

13.Ans: consumer surplus is $40

Explanation:

Consumer surplus = 1/2 ( height * base) = 1/2{ ( $14 - $10 ) * 20 } = 1/2 ( $4 * 20) = 1/2 * $80 =$40

24.Ans: some surplus is transferred from producer to consumer.

Explanation:

Areas of C + D+ F + G from producer's surplus are transfered to consumer.

26.Ans: E

28.Ans: A

31.Ans: $10

Explanation:

Tax per unit = After tax market price - After tax price received by the seller

= $ 16 - $6

= $10

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