Figure 4-8$60502060 70Quantity (millions of tons)Refer to Figure 4-8. The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal.A $40-per-ton tax on soft coal is levied, shifting the supply curve from S¡ to S2. Imposing the tax increases theequilibrium price of soft coal from$20 to $60 per ton.$20 to $50 per ton.O $50 to $60 per ton.$50 to $90 per ton.Price (per ton)

A market is a place where the buyers and the sellers will interact with each other and the exchange…

Answered: Figure 4-8 $60 50 20 60 70 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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5
If a price ceiling is set at $200, this will create a O shortage of 600. Osurplus of 800. Osurplus of 1.600 nonbinding price ceiling. shortage of 1.400.
1. How imposition of some tax on goods will affectlabor supply
15) PA P3 $ P₂ P₁ 0 FIGURE 18-3 OE D E: A 93 B 92 Quantity 9/₁1 Demand Refer to Figure 18-3. Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P1. If an excise tax raises the price from P1 to P2, the excess burden of the tax is area 15) A) P3AP4. B) P1FBP2. C) P1CBP2. D) BFC. E) P2BP3.
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
Price (dollars per bucket) 16 15 14 So 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from So to S1. The amount of this tax is per bucket of golf balls. O A) $3 B) $1 C) $2 O D) $4 %3D
1. New advances in recycling technology reduce the cost of producing paper made from recycled material. SELECT THE CORRECT ANSWER a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fall
A gift shop sels ceramic figurines for $80 and crystal vases for $100. At these prices, the gift shop sells 12 ceramic figurines and 8 orystal vases p quantity demanded of ceramin figurines and crystal vases will increase to 18 units and 12 units per day, respectively. If the gift shop wants to increase revenue, which of the following actions should be taken? OA Increase the price of both ceramin figurines and crystal vases OB. Decrease the price of both ceramic figurines and crystal vases. OC. Increase the price of ceramic figurines and decrease the price of crystal vases. OD. Decrease the price of ceramic figurines and increase the price of crystal vases day. If the price of ceramic figurines fals to $64 and the price of crystal vases fails to $25, the
7. Assume the price was legally changed to $8.50. Would this be a price floor or price ceiling? * $10 S $9 $8 $7 $6 $5 $4 D 30 40 50 Quantity 10 20 60 70 80 A. price floor O B. price ceiling
2. Suppose that a market's demand curve is given by: Price Quantity $15 6 $14 8 $13 10 $12 12 $11 14 $10 16 $9 18 $8 20 $7 22 $6 24 $5 26 $4 28 Suppose that the price start at $6, and then drops by $2. What is the elasticity of demand over the range of this change? Ans:
Price (dollars per hour) Select one: O A. perfectly inelastic. OB. elastic. OC. inelastic. OD. unit elastic. O E. perfectly elastic. 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 S + tax 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. At a quantity of 4,500 frisbees, supply is
Figure 7-1 Demand A B D QUANTITY Refer to Figure 7-1. Suppose that the price falls from P2 to P1 Area B represents the O a. decrease in producer surplus in the market when the price increases from P1 to P2. b. decrease in producer surplus that results from a downward-sloping demand curve. Oc.consumer surplus to new consumers who enter the market. O d. additional consumer surplus to initial consumers when the price falls. PRICE

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