Exam 10: Competitive Markets: Applications

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Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 60 - Q ^ { d }$ ; the supply curve can be expressed as $P =$ $0.5 Q ^ { s }$ . Quantity is expressed in millions of boxes per month. What are the amount traded and the price for this market?

(Multiple Choice)

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Question 81

Suppose that the market for corn is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 10 - Q ^ { d }$ ; the supply curve can be expressed as $P =$ $0.25 Q ^ { s }$ . Quantity is expressed in millions of bushels. Now suppose that the federal government imposes a price floor of $\$ 3$ per bushel of corn. What is the dead-weight loss (per million bushels) associated with the price floor when the most efficient producers are active?

(Multiple Choice)

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Question 82

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in producer surplus due to the tax?

(Multiple Choice)

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Question 83

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is total surplus in this market?

(Multiple Choice)

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Question 84

-Based on the graph above, suppose the government sets a price ceiling of $50 in this market. What is the minimum level of deadweight loss with the price ceiling?

(Multiple Choice)

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Question 85

If the government decides to subsidize a good, it will typically do all of the following except:

(Multiple Choice)

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Question 86

Showing 81 - 86 of 86

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in producer surplus due to the tax?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is total surplus in this market?

-Based on the graph above, suppose the government sets a price ceiling of $50 in this market. What is the minimum level of deadweight loss with the price ceiling?

If the government decides to subsidize a good, it will typically do all of the following except:

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 10: Competitive Markets: Applications

Suppose that a market is initially in equilibrium. The initial demand curve is P=90−QdP = 90 - Q ^ { d }P=90−Qd . The initial supply curve is P=2QsP = 2 Q ^ { s }P=2Qs . Suppose that the government imposes a $3\$ 3$3 tax on this market. What is the change in producer surplus due to the tax?

Consider a perfectly competitive market with market supply Qs=−2+PQ ^ { s } = - 2 + PQs=−2+P and market demand Qd=30−PQ ^ { d } = 30 - PQd=30−P . What is total surplus in this market?

-Based on the graph above, suppose the government sets a price ceiling of $50 in this market. What is the minimum level of deadweight loss with the price ceiling?

If the government decides to subsidize a good, it will typically do all of the following except:

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in producer surplus due to the tax?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is total surplus in this market?