A tax on of $1 per kg on the buyers of sugar will cause Select one: a. the demand curve to shift downward by $1 per kg. b. a movement upward along the demand curve by $1. c. a movement downward the demand curve by $1. d. the demand curve to shift upward by $1 per kg.
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- What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?An increase in the supply of a good will decrease the total revenue producers receive if a. the demand curve is inelastic. b. the demand curve is elastic. c. the supply curve is inelastic. d. the supply curve is elastic.In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
- SOLCE FOR D-E ONLYThe Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10.A. Find the equilibrium Price and Quantity B. What is the level of total expenditure in this market?C. What is the price elasticity of demand at equilibrium? D. If there is a law that prevents you from consuming this good, how much should you be compensated by the government to accept it given the Consumer Surplus (CS)? Calculate.Demand shifts to P = - 2Q+260 due to an increase in the price of another good B from $20 to $25 E. Find the New Equilibrium, and Calculate the new Consumer Surplus and the Cross Price Elasticity of Demand. What type of goods are these?Price (dollars per bucket) 16 15 14 13 12 || 10 0 200 300 400 500 600 ..S₁.. D 700 800 Quantity (buckets) 002 002 OF1Z2U8 I meiner Scho thouges 002 6. The above image is the market for buckets of golf balls at a drivng range. A tax was imposed on this market, moving the supply from SO to S1. How large was the tax? Explain how you figured that out. (3 points) 85 AS 111. The accompanying table gives part of the supply schedule for personal computers in the United States. a. Calculate the price elasticity of supply when the price increases from $900 to $1,100 using the midpoint method. Tell whether the good is elastic or inelastic. Price of computers Qty of computers 1100 13000 900 8000
- OC.C d. B QUESTION 31 We say that a good is an inferior good if a. the quantity demanded for the good rises when the price falls. b. the demand for the good rises when income falls OC. the demand for the good rises when the price falls d. the demand for the good rises when income rises QUESTION 32 DOO3. The accompanying table shows the price and yearly quantity sold of souvenir T-shirts in the town of Crystal Lake according to the average income of the tourists visiting. a. Using the midpoint method, calculate the price elasticity of demand when the price of a T-shirt rises from $5 to $6 and the average tourist income is $20,000. Also calculate it when the average tourist income is $30,000. b. Using the midpoint method, calculate the income elasticity of demand when the price of a T-shirt is $4 and the average tourist income increases from $20,000 to $30,000. Also calculate it when the price is $7. Quantity of t-shirts when average tourist income is $30,000 Price of Quantity of t-shirts when average tourist income is $20,000 a t-shirt $4 3000 5000 $5 2400 4200 $6 1600 3000 $7 800 18001. The price elasticity of demand for bread A. is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. B. will be higher if there is a new product that is a close substitute for bread. C. will be higher if consumers consider bread to be a necessity. D. All of the above are correct. E. A and B, only
- Consider the market for chicken burger. For each of the events listed here, identify whichof the determinants of demand or supply are affected. Also indicate whether demand orsupply increases or decreases. Then draw a diagram to show the effect on the equilibriumprice and equilibrium quantity of chicken burger.a. Nowadays grade IX-XII students throughout the country thinks that chicken burger is the mostconvenient meal for lunch time in schoolb. Price of chicken meat is now higherc. People expect 10% discount on chicken burger in December as a Christmas offerd. Price of hotdog fallse. A stock market crash lowers people’s wealth [Consider chicken burger is inferior good for e)]wShow all your calculations clearty The following table shows some information about the demand function for good X. Three different sets of information were gathered on three separate days. Quantity Demanded for Good X Price of Good X Price of Income Good Y day 1 10 kg $3/kg $1.50/kg $1000 day 2 14 kg $3/kg $1.50/kg $1500 day 3 6 kg $3/kg S0.50/kg $1000 Are good X and good Y substitutes or complements? Justify your answer by calculating the corresponding clasticny using the relevant data.A good has a price elasticity of demand of 2.5 this tells us that; A. none of the above B. the price rises by 2.5% when quantity demanded falls by 1% C. Quantity demanded decreases by 2.5% when the price rises by 1% D. the price changes by $ 2.50 when quantity changes by 1 unit
