1. Colleen works as a clown and willing to pay $110 for a new tricycle that sells for $105. Erin work as an acrobat and is willing to pay $164 for the tricycle. What is the total consumer surplus for colleen and Erin?

A. $110

B. $60

C. $105

D. $155

E. $65

2. When his income falls from $52,000 to $38,000, victor increases his monthly purchase of hamburger helper from 8 boxes to 10 boxes. Using the midpoint method, Victor's income elasticity of demand of hamburger helper

A. 0.71 (normal good)

B. -0.71 (Inferior good)

C. 0.44 (normal good)

D. -0.44 (inferior good)

E. -1.4 (inferior good0

3. If a $2 is imposed on shoe laces for producers (They have a supply curve that is elastic) with a perfectly inelastic demand curve (The consumers have this a demand), the burden of the $2 tax will be placed

A. On the both consumers and producers equally

B. Mostly on consumers but partially by producers

C. Mostly on producers but partially by consumers

D. On consumers alone

E. On producers alone

4. The following graph below depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that produces receive. QT units are sold after the tax is imposed.