1. Which of the following events would correctly describe the outcome in a competitive market? A. An increase in supply, ceteris paribus, causes an increase in equilibrium price and quantity. B. An increase in demand, ceteris paribus, causes a decrease in equilibrium price and quantity. C. An increase in demand, ceteris paribus, causes an increase in equilibrium price and quantity. D. An increase in supply, ceteris paribus, causes an increase in equilibrium price and a decrease in equilibrium quantity. E. A decrease in demand, ceteris paribus, causes an increase in equilibrium price but an indeterminate change in equilibrium quantity. 2. A government imposes a per-gallon tax on gasoline. Before-tax price of a gallon of gas is $3 per gallon. The after-tax price of a gallon of gas is $10. Demand for gasoline is unchanged after the tax. Which of the following is true? A. The amount of dead weight loss increases. B. The demand for gasoline is perfectly inelastic. C. Producers of gasoline lose revenue after the tax. D. The supply of gasoline cannot meet the demand. E. Consumers and producers bear the tax burden equally. 3. The graph in the attachment illustrates a price ceiling. What represents the loss producer surplus after the price ceiling is implemented? A. B. B. B + C. C. B + E. D. B + F. E. E + F.4. Which of the following groups would not directly benefit from the removal of an import quota on good X. A. Foreign suppliers. B. Domestic suppliers. C. Domestic consumers. D. Domestic suppliers of good Y, a complement of good X. E. Domestic consumers of good Y, a complement a good X.