Question

QUESTION 6

Assume Qd=10-2P and Qs=P. What is the elasticity of SUPPLY if price increases from $1 to $3?
a.Inelastic
b.Not enough information is available to answer this question.
c.Elastic
d.Unit elastic

10 points   

QUESTION 7

Assume Qd=10-2P and Qs=P. If a tax of $1 is imposed by the government, who will pay the larger burden of the tax.
a.Buyers
b.Buyers and sellers will pay equal shares of the tax.
c.Not enough information is in the question to say who pays the greater share of the tax.
d.Sellers

10 points   

QUESTION 8

Assume Qd=10-2P and Qs=P. What is the price elasticity of DEMAND if the price moves from $3 to $4?
a.Answer is not in the list of options
b.Elastic
c.Unit Elastic
d.Inelastic

10 points   

QUESTION 9

Assume Qd=200-P and Qs=P. What is Total Surplus at P* and Q*?
a.$1,250
b.$2,500
c.$10,000
d.$5,000

10 points   

QUESTION 10

Assume Qd=200-P and Qs=P. What is Total Surplus if the government puts a price ceiling of $50 on this market?
a.$10,000
b.Answer not shown in this list
c.$2,500
d.$5000

Answer 1