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Cards In This Set
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In the figure above if the min wage is $2 per hour then
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D. The Q of the labor supplied is # million hours and the Q of the labor demanded is 3 million hours (first pic)
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2. Which of the following is not a determinant of the price elasticity of demand for a good?
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B. The steepness for the supply curve for the good
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3. Consumer surplus before the tax is equal to (second pic)
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D. $100
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4. The amount of the tax rev. is equal to (second pic)
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D. $40
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5. the tax incidence bore by sellers because of the tax is equal to (second pic)
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B $.50
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6. Producer surplus after the tax is equal to (second pic)
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B. Areas D+E+F
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7. When the price of a good falls
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C. Consumer surplus rises because existing buyers gain an extra benefit and new buyers will now purchase the product
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8. According to the graph of the demand curve above if price rises from P1 to P2 the increase in producer to the original sellers in the market is represented by (pic 3)
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D. the area of rectangle A
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9. According to the graph of the demand curve above is P1 is $5 and P2 is $6.50 and Q1 is 250 and Q2 is 300 the increase of producer surplus to sellers entering the market is equal to
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D. $37.50
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10. A price ceiling is binding when
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D. below the equilibrium price causing a surplus
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11. Economists use the concept of price elasticity of demand to
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A. measure how much buyers respond to changes in the price of a good
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12. The demand for choc chip cookies dough is likely quite elastic because
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D. many other flavors of ice cream are good subs
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13. When demand is perfectly inelastic the price elasticity of demand
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A. is zero and the demand curve is vertical
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14. A perfectly elastic demand implies that
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B. any rise in price above that represented by the demand curve will result in no output demanded
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15.Based on the graph above total surplus without the tax in place is
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C. $6,000 (graph 4)
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