1.In the market for used cars, the demand and supply equations are given byQD= 12,000 - 0.4PandQS= 0.1P+ 5,000, respectively, wherePis the price per car, andQis the quantity of cars. What is the size of the deadweight loss at a price floor of $15,000?

a. 250,000

b. $1 million

c. $500,000

d. $750,000

2.If the legal burden of a tax is passed from sellers to buyers:

a.the price paid by sellers will fall.

b.the equilibrium quantity falls.

c.deadweight loss is unchanged.

d.the price paid by buyers will rise.

2.The demand for and supply of movie tickets are given byQD= 30 - 3PandQS= 4P- 19, respectively, wherePis the price per ticket, andQis in thousands of tickets. If the government places a $1 tax on each ticket, the prices that consumers pay with and without the tax are _____ and _____, respectively.

a.$7.50; $6.50

b.$7.57; $7

c.$4.30; $3.80

d.$8; $7

3.All else being equal, a demand increase:

a.causes both consumer and producer surplus to decrease.

b.causes consumer surplus to decrease and producer surplus to increase.

c.causes consumer surplus to increase and producer surplus to decrease.

d.causes both consumer and producer