Question 1

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The tax burden fall...

Question 2

Figure 6-13
This figure shows the market demand and market supply curves for good X. 
-Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

Accepted Answer

A)  no surplus.
B)  a surplus of 10 units.
C)  a surplus of 15 units.
D)  a surplus of 20 units.E) B) and C)
F) A) and B)

Question 3

Minimum-wage laws dictate the

Accepted Answer

A)  average price employers must pay for labor.
B)  highest price employers may pay for labor.
C)  lowest price employers may pay for labor.
D)  the highest and lowest prices employers may pay for labor.E) All of the above
F) None of the above

Question 4

Figure 6-22 
-Refer to Figure 6-22. Sellers pay how much of the tax per unit?

Accepted Answer

A)  $0.50.
B)  $1.50.
C)  $3.00.
D)  $5.00.E) A) and C)
F) A) and D)

Question 5

Figure 6-8 1 dollars per unit for that quantity and sellers are willing and able to accept a minimum of P2 dollars per unit for that quantity. If P1 - P2 = $3, then the price control is A) a price ceiling of $2.00. B) a price ceiling of $5.00. C) a price floor of $5.00. D) either a price ceiling of $2.00 or a price floor of $5.00." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 6-8. When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P1 dollars per unit for that quantity and sellers are willing and able to accept a minimum of P2 dollars per unit for that quantity. If P1 - P2 = $3, then the price control is

Accepted Answer

A)  a price ceiling of $2.00.
B)  a price ceiling of $5.00.
C)  a price floor of $5.00.
D)  either a price ceiling of $2.00 or a price floor of $5.00.E) C) and D)
F) B) and D)

Question 6

Table 6-1 
-Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What will be the size of the surplus in this market?

Accepted Answer

A)  0 units
B)  200 units
C)  1800 units
D)  2000 unitsE) A) and D)
F) None of the above

Question 7

Figure 6-7 
-Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Accepted Answer

A)  any price below $7.
B)  any price below $3.
C)  any price below $9.
D)  any price above $7.E) All of the above
F) A) and C)

Question 8

Figure 6-28 
-Refer to Figure 6-28. Suppose a tax of $4 per unit is imposed on this market. Which of the following is correct?

Accepted Answer

A)  Buyers and sellers will share the burden of the tax equally.
B)  Buyers will bear more of the burden of the tax than sellers.
C)  Sellers will bear more of the burden of the tax than buyers.
D)  Any of the above is possible in this market.E) All of the above
F) None of the above

Exam 6: Supply, Demand, and Government Policies

Correct Answer
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Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $4 per unit is imposed on this market. Which of the following is correct?

Correct Answer
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Minimum-wage laws dictate the

Correct Answer
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Figure 6-7 -Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Correct Answer
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How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Correct Answer
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The tax burden fall...
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Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

Correct Answer
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Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What will be the size of the surplus in this market?

Correct Answer
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Figure 6-22 -Refer to Figure 6-22. Sellers pay how much of the tax per unit?

Correct Answer
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Exam 6: Supply, Demand, and Government Policies

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Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $4 per unit is imposed on this market. Which of the following is correct?

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Minimum-wage laws dictate the

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Figure 6-7 -Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Correct AnswerverifiedShow Answer

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Correct Answerverified The tax burden fall...View AnswerShow Answer

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What will be the size of the surplus in this market?

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Figure 6-22 -Refer to Figure 6-22. Sellers pay how much of the tax per unit?

Correct AnswerverifiedShow Answer

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Correct Answer
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The tax burden fall...
View Answer

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Correct Answer
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