3 If demand is P=80-2Q, and supply is P=5+Q, which is less elastic at the equilibrium?

A Supply

B: Demand

C: There is not enough information to solve the problem

D: the curves are equally elastic

4 Assume milk and cereal are substitutes. An increase in the price of milk will

A: Decrease quantity demanded for cereal

B: Decrease demand for cereal

C: Increase demand for cereal

D: Increase quantity demanded for cereal

5 A market is describe by the following supply and demand curves=Qs=2p and Qd=100-p. Government levies tax on producers of $15. What is the total surplus after the tax policy?

A: 30,000 B 15,000C 29,925D 20,000

6 Consider a market in which the demand curve is given by P=9-0.1Qd. and the supply curve is given by P=0.2Qs. Suppose the government impose a price floor of 7 dollars. How much is producer surplus?

A 100B 70 C 40D 90

7 Consider a marketin which demand is inelastic and supply is elastic(both are linear).Suppose the equilibrium price decreases but the equilibrium quantity remains the same. This could have happened becausethe demand curveshifted _____ and the supply curve shifted ______-, and the demand curve shifted by a ______quantity than the supply curve.

A left, right, smallerB left, left, smaller

C right, right, largerD right, left, larger

8.Suppose the demand curve for burritos is P=30-Qd and consumers have to pay $10 per burrito. The consumer surplus is equal to

A 100B300C 200D 400

9.Consider the market for bread. Suppose there are events in the market which cause both the supply curve and demand curve to shift, such that the new equilibrium quantity is lower, and the new equilibrium price is higher. Only one of the following could be responsible. Which one?

A: Decrease in the cost of flour, and a decrease in buyer's incomes

B: Increase in the cost of flour, and an increase in buyer's income

C: The number of seller in the market increase, and the number of buyer in the market decreases

D:Seller expectthe cost of flour to increase in the future, and buyers expect their income to decrease in the future.