Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the following statements are true? (Select all that apply.) O a. The shift from D1 to D2 represents a tax. O b. The shift from D1 to D2 represents a subsidy. OC A supply-side tax would have had the same effect on the market. O d. Supply is inelastic. O e. Producers will see a larger change in price than consumers. O f. Supply is more elastic than demand. O g. Demand is elastic. Oh The amount of the tax/subsidy is $3 Consumers will see a larger change in price than producers. O, There is not enough information to determine the elasticity of demand.

Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the following statements are true? (Select all that apply.) O a. The shift from D1 to D2 represents a tax. O b. The shift from D1 to D2 represents a subsidy. OC A supply-side tax would have had the same effect on the market. O d. Supply is inelastic. O e. Producers will see a larger change in price than consumers. O f. Supply is more elastic than demand. O g. Demand is elastic. Oh The amount of the tax/subsidy is $3 Consumers will see a larger change in price than producers. O, There is not enough information to determine the elasticity of demand.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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R C *F5 % Refer to Table 7-11. Both the demand curve and the supply curve are straight lines. At equilibrium, total surplus is O a. $72. O b. $56. OC. $44. O d. $96. 5 团 Price (Dollars per unit) 12.00 10.00 8.00 6.00 4.00 2.00 0.00 F6 F7 Y & Quantity Demanded Quantity Supplied (Units) 0 3 6 9 12 15 -18 Table 7-11 F8 * 8 ů F9 09 9 JUL F10 (Units) 36 30 24 18 12 6 O 0 ☀- F11 *+ F12 PrtSc
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Suppose a market has a downward sloping demand curve and a perfectly inelastic supply curve. The government wants to increase consumer surplus, which of the following policies could achieve this? O A minimum price A subsidy on purchases in the market A maximum price A tax on purchases in the market More than one of the above
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