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1- Suppose that WTP of the marginal buyers of the 3rd units is 225$then the total surplus
maximized if
- 2 units of the good are produced and sold
- 3 units of the good are produced and sold
- 4 units of the good are produced and sold
- 1 units of the good is produced and sold ( here there is a sketch ill take a pic of its)
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Economist believe that rent control is ?
If the price of the good is 250, then CS is ? ( here there is a sketch)
DWL loss measures the loss of ?
Tax incidence is ?
Price is 1.25, WTP is 150 ,, price is 1.50 ,, WTP is 175 using the midpoint calculate the
percentage change ?
7- How does the elasticity allow us to improve upon our understanding of sold ?
8- Total surplus is ?
9- Which of the following will causes increase in CS ?
10- When a binding celling is imposed on a market to benefit buyers ?
11Income
Qx
Qy
30000
2
20
40000
6
10
Using midpoint , find the income elasticity for demand good X ?
12- there is an increase in supply that reduce market price, CS increases because of 1) CS
received by exiting buyers and 2) new buyers are entering the market. T or F
13- price celling above equilibrium is not binding . T or F
14- the price paid by buyers will decrease in the market if the government ?
15- in order to conclude that market are efficient, we assume that they are perfects
competitive . T or F
16- term tax incidence refers to ?
17- the equilibrium allocation of resources ?
18- in the market, marginal buyers the buyer who is ?
19- most economists are in favor of price control as a way of allocating resources in the
economy . T or F
20- if the tax imposed on a market with inelastic supply and elastic demand then the Producer
surplus is ? ( here there is a sketch ill take a pic of it )
Here she gave us a question like that
She asked about the section and which section is elastic and inelastic and so on
21- Figure 5-1
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50.
Refer to Figure 5-1. The section of the demand curve labeled A represents the
a.
elastic section of the demand curve.
b.
inelastic section of the demand curve.
c.
unit elastic section of the demand curve.
d.
perfectly elastic section of the demand curve.
ANS: A PTS: 1
DIF: 2
REF: 5-1
TOP: Elastic demand
MSC:
Interpretive
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51.
Refer to Figure 5-1. Suppose the point labeled B is the “halfway point” on the demand
curve and it corresponds to a price of $5.00. Then, between prices of $4.90 and $5.10,
a.
the price elasticity of demand is less than 1.
b.
the price elasticity of demand is equal to 1.
c.
the price elasticity of demand is greater than 1.
d.
any of the above could be correct, depending on the quantities demanded at prices of $4.90 and
$5.10.
ANS: B PTS: 1
DIF: 2
REF: 5-1
TOP: Price elasticity of demand
MSC: Interpretive
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a.
b.
c.
d.
ANS: D
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52.
Refer to Figure 5-1. The section of the demand curve labeled C represents the
elastic section of the demand curve.
perfectly elastic section of the demand curve.
unit elastic section of the demand curve.
inelastic section of the demand curve.
PTS: 1
DIF: 2
REF: 5-1
22- the price elasticity of Supply and demand effect ?
23- There is a question hmmm .. what is the producer surplus and measures
what ? and what is the relationship between it and the supply curve ?
illustrate
24- question about midpoint and CS its so easy but I did not have time to
copy everything
Sorry this is all I’ve got .. hope you do will in the final