38. The price paid by buyers in a market will increase if the government(i) increases a binding price floor in that market.(ii) increases a binding price ceiling in that market.(ii) decreases a tax on the good sold in that market.a. (i) and (ii) onlyb. (). (ii), and (ii)c. (i) onlyd. (i) only(iii) onlye.39. A tax on the sellers of coffee mugsincreases the size of the coffee mug market.b. has no effect on the size of the coffee mug market.decreases the size of the coffee mug market.d. may increase, decrease, or have no effect on the size of the coffee mug market.a.с.40. When calculating the cost of college, which of the following should you probably not include?The cost of books required for college classesb. The income you would have earned had you not gone to collegeThe cost of rent for your off-campus apartment.d. The cost of tuitiona.с.41. What you give up to obtain an item is called youra. monetary cost.b. opportunity cost.direct cost.c.d. explicit cost.42. The minimum wage is an example of aa. tax.b. price floor.c. price ceiling.d. wage subsidy.43. Two goods are complements when a decrease in the price of one goodincreases the quantity demanded of the other good.b. decreases the demand for the other good.increases the demand for the other good.d.a.C.decreases the quantity demanded of the other good.

38. The price paid by buyers in a market will increase if the government () increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market. a. (i) and (ii) only b. (). (i), and (i) c. (i) only d. () only e. (i) only 39. A tax on the sellers of coffee mugs a. increases the size of the coffee mug market. b. has no effect on the size of the coffee mug market. c. decreases the size of the coffee mug market. d. may increase, decrease, or have no effect on the size of the coffee mug market. 40. When calculating the cost of college, which of the following should you probably not include a. The cost of books required for college classes The income you would have earmed had you not gone to college The cost of rent for your off-campus apartment. d. The cost of tuition

38. The price paid by buyers in a market will increase if the government () increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market. a. (i) and (ii) only b. (). (i), and (i) c. (i) only d. () only e. (i) only 39. A tax on the sellers of coffee mugs a. increases the size of the coffee mug market. b. has no effect on the size of the coffee mug market. c. decreases the size of the coffee mug market. d. may increase, decrease, or have no effect on the size of the coffee mug market. 40. When calculating the cost of college, which of the following should you probably not include a. The cost of books required for college classes The income you would have earmed had you not gone to college The cost of rent for your off-campus apartment. d. The cost of tuition

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the demand for CDs is very price elastic and the supply is very price inelastic. A per unit tax imposed on CDs would be borne a. equally by buyers and sellers. b. more heavily by buyers. c. more heavily by sellers. d. by neither buyers or sellers.
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Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 D 40 60 Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all work. а. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what that value is? C. How much is the consumer surplus before the tax? d. How much is producer surplus before the tax? е. How much is the consumer surplus after the tax? f. How much is producer surplus after the tax? g. How much is the deadweight loss as a result of the tax
The table shows the market for tulips. Price (dollars per bunch) Quantity demanded Quantity supplied (bunches per week) 10 100 40 12 90 60 14 80 80 16 70 100 18 60 120 If tulips are taxed at $6 a bunch, what is the tax revenue? Tax revenue is $______ a week.
O out Figure 8-3 Price Pa P₂ P₁ a. Pl . b. P2 X -Tax- C. P3 - P2 d. P3 Figure 21 D B 92 Refer to Figure 8-3. What is the price sellers receive after the tax? D Quantity
Question 25 The burden of a tax on a good is said to fall completely on the producers if the: a. wages received by workers who produce the good increase by the amount of the tax. b. price paid by consumers for the good increases by the amount of the tax. c. price paid by consumers does not change. d. price paid by consumers for the good declines by the amount of the tax.
Question 4 Figure #3: The graph below represents a $10 per unit tax on a good then the amount bought and sold in the market is only 4 units. Note that Q represents quantity and P represents price. P. 24 20 A 16 Supply 12 GIH 8. 4. K M Demand 4 6 10 12 14 16 Refer to Figure #3. The government collects tax revenue that is (or are) the area(s) represented by the area OF-G-L OL OB-D Oc-F
c. A progressive tax d. A regressive tax QUESTION 3 Corporate profits are a. taxed to pay for Medicare. b. exempt from taxes. c. included in payroll taxes. d. taxed twice, once as profit and once as dividends. QUESTION 4 A value-added tax or VAT is a tax on a. retail purchases only. b. pollution. c. all stages of production of a good. d. wholesale purchases only. QUESTION 5 Table 12-17 INCOME $50,000 100,000 200,000 AMOUNT OF TAX $12,500 (25%) $25,000 (25%) $50,000 (25%) TAX A
Figure 4-5. The graph shows the impact of an excise tax. Price $2.00 1.50 1.00 .50 B A M E H K I 350 F 500 Quantity tax G Stax $1.00 for consumers and $0.50 for producers $1.00 for consumers and $1.00 for producers. $0.25 for consumers and $0.75 for producers. $0.50 for consumers and $0.50 for producers. S DSR Refer to Figure 4-5. The amount of the actual tax burden paid by consumers and producers is
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax, 5,000 cases of beer are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax), The amount of the tax on a case of beer is S burden that falls on producers is True per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. O False per case. Of this amount, the burden that falls on consumers is 5 per case, and the
QUESTION 7 Figure: The vertical distance between points A and C represents a tax in the market. 1000 900 Price 800 700 600 500 400- 300 200- 100- b. Supply Demand 10 20 30 40 50 60 70 80 90 100110 Quantity Refer to Figure. After the taxes a. there will be a loss to the consumers of the amount $4,000. there will be a loss to the consumers of the amount $6,000. C. there will be a loss to the consumers of the amount $2,000. d. there will be a loss to the consumers of the amount $8,000.
2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product. a. By how much will the price of the product rise? b. What are the maximum and minimum possible changes in price? C. What is the producer's share of the tax? d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).