1.suppose Samsung has to send $100 to the government for every galaxy it sells. suppose this tax causes Samsung to increase the price of its galaxy from $1,100 to $1,190. which of the following statements is correct?

a. the effective price paid by consumers is $100 greater per galaxy than it was before the tax.

b. 90% of the tax incident or tax burden fall on the sellers.

c. the effective price received by Samsung is $90 greater per galaxy than before the tax.

d. 90% of the tax incidence or tax burden fall on the buyers.

2.consider a market in which the demand curve is given by P=9-0.1 Qd, and the supply curve is given by P=0.2Qs. suppose the government imposes a price floor of 7 dollars. how much is producer surplus?

a. 90

b. 70

c. 40

d. 100

3.

the table gives the demand and supply schedules for college meals. if the college put a price ceiling on meals at $7 a meal, what is the price students pay for a meal? how many meals do they buy?

a. students buy 2250 meals and pay $7 for each meal.

b. students buy 2500 meals and pay $6 for each meal.

c. students buy 3000 meals and pay $7 for each meal.

d. students buy 2250 meals and pay $6 for each meal.

4.suppose you are a marketing consultant for a competitive firm that produces widgets and you must determine what the effect of an increase in labor costs will be for future planning. an increase in labor will cause the smallest increase in price when

a. both supply and demand are inelastic.

b. demand is inelastic and supply is elastic.

c. demand is elastic and supply is inelastic.

d. both supply and demand are elastic.

5.assume milk and cereal are substitutes. an increase in the price of milk will

a. increase demand for cereal.

b. increase quantity demanded for cereal.

c. decrease demand for cereal.

d. decrease quantity demanded for cereal.

6.the government decides to increase tax on cigarettes to discourage smoking. if the tax on a one pack is increased from $1 to $4, the deadweight loss from the tax increases by a factor of

a. 16

b. 24

c. 9

d. 5

9.if the price elasticity of demand for a good is 2.8, then a 10% increase in price would be expected to result in a

a. 14% decrease in quantity demanded.

b. 28% decrease in quantity demanded.

c. 48% decrease in quantity demanded.

d. 7% decrease in quantity demanded.

10.the demand curve for guitars is given by Pd=200-5Qd and supply for guitars is given by Ps=20+Qs. what is the equilibruim price?

a. $50

b. $30

c. none of the above.

d. $70