Answered: a. $7 b. $3 c. Between $5 and $7 PRICE…

a. $7 b. $3 c. Between $5 and $7 PRICE etwee 7 5 3 60 er to Figure 6-11. Suppose a tax of $2 per unit is imposed on this market. How much will buy osed? 100 QUANTITY

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a. $7
b. $3
c. Between $5 and $7
d. Between $3 and $5
7
PRICE
EL
3
60
100
fer to Figure 6-11. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is
posed?
QUANTITY

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Market for Game Consoles 600 Tools 550 500 CS PS 450 400 350 ESeq 300 250 200 150 100 50 D 10 20 30 40 50 60 70 80 90 100110 Quantity a. What is the quantity demanded at $150 per game console? Quantity demanded: 20 game consoles b. What is the quantity supplied at $150 per game console? Quantity supplied:| 80 game consoles c. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided "CS" to illustrate this area on the graph. Consumer surplus: $ 30000 d. What is the producer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “PS" to illustrate this area on the graph. Producer surplus: $ 3750 e. What is total economic surplus at a price of $150 per game console? Economic surplus: $ 33750 f. What is the economic surplus generated if the market were in equilibrium? Instructions: Use the tool provided “ESeg" to illustrate this area on the graph. Economic surplus in equilibrium: $ 56250 Price…
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please show the consumer surplus and producer surplus in the graph 13. Refer to Figure 6-7. Which of the following price controls would cause a shortage of 20 units of the good? a. a price ceiling set at $6 b. a price ceiling set at $5 c. a price floor set at $9 d. a price floor set at S8 Figure 7-19 Price Ayddns 15 70 65 60 55 45 35 30 25+ 20+ 15 10 Demand i à is is 16 n1 21 22 23 a 25 Deannty 14. Refer to Figure 7-19. If the govermment imposes a price ceiling of $55 in this market, then total surplus will be a. S187.50. b. S125.00. c. $250.00. d. $266.67.
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