(31-39) Choose a correct answer for each question and clearly mark it. Then,explain why your answer choice is true. You should explain why an incorrect answer is incorrect(at least one of them). Your explanations should be correct and thorough.
Incorrect Question 31 0 / 2.5 pt In the graph below, the vertical distance between points A and B represents a tax in the market. Which of the following statements is a correct T Price 12 - 11 - 10 - Supply 9- description of the graph? Demand 05 1 15 2 25 3 35 4 45 Quantity O The amount of deadweight loss as a result of the tax is $1.50. O The gain of producer surplus as a result of the tax is $2.00. O Total surplus with the tax in place is $7.5. O The loss of consumer surplus as a result of the tax is $1.00. O The government revenue from the tax is $10.00.Incorrect Question 32 0 / 2.5 pts Suppose that Market A is characterized by Demand 1 and Supply 1, and Market B is characterized by Demand 1 and Supply 2. If an identical tax is imposed on each market, the tax will create a smaller deadweight loss in which market? Supply 1 20 40 60 80 100 120 140 160 180 200 O Market B Both Market A and B create the same deadweight loss O None of these are correct. O Market AQuestion 33 Which of the following scenarios is not consistent with the Laffer curve? O The tax rate is very high, and tax revenue is very high. O The tax rate is very high, and tax revenue is very low. The tax rate is moderate (between very high and very low), and tax revenue is relatively high. O The tax rate is very low, and tax revenue is very low.Question 34 Refer to the following graph. If the government imposes a price ceiling of $10 in this market, then producer surplus will be T Price 20 - 18 - 16 - 14- 12 Supply 10+ Demand N 10 20 30 40 50 60 70 30 Quantity O $120 O $200 O $130 O $80 O $50rrect Question 35 The figure illustrates the market for baskets in Country A. Which of the following statements is correct? Price of Baskets $14 Domestic Supply 10 World Price 7 Domestic Demand 40 70 105 Quantity of Baskets O As a result of trade, total surplus increases by $100. O With trade, this country will export 40 baskets. O Without trade, consumer surplus is $80. O Without trade, producer surplus is $210. O With trade, the price of baskets in this country will be $7.The figure below illustrates the effect of a tariff. Which of the following statement is correct? Price of Carnations $14 Domestic Supply 12 10 8 Tariff World Price Domestic Demand 100 200 300 400 500 600 Quantity of Carnations (in dozens) O When a tariff is imposed in the market, domestic producers gain by $200. O With trade and without tariff, this country imports 200 carnations. O The amount of deadweight loss caused by the tariff equals $200. The amount of revenue collected by the government from the tariff is $300.Incorrect Question 37 0 / 2.5 pts The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes O harm the United States as a whole, because they reduce producer surplus by an amount that exceeds the gain in consumer surplus and government revenue. O benefit the United States as a whole, because they generate revenue for the government and increase producer surplus. O benefit the United States as a whole, because they generate revenue for the government. In addition, because the goods are priced below cost, the taxes do not harm domestic consumers. O harm the United States as a whole, because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue.3\" Question 33 0 f 2-5 Pts The demand curve for cotton per year in the United States is given by the equation: QDx=1503Px. The domestic supply curve for cotton per year in the United States is given by the equation: Q5.us=50+2pxs where qus is the quantity supplied domestically in millions of poundsr QD is the quantity demanded in millions of pounds and PK is price per pound in cents. The rest of the world, in a situation of free trade, will sell as much cotton as it wants in the US. at a price of 10 cents. That is. the supply of imported cotton is represented by a horizontal line at Px=10 cents. If the United States is under free trade, what is the price of cotton in the U.S.? If the government imposes an import quota of 30 million pounds on foreign cotton, what is the price of cotton be in the US? Px u'tt'ler f'ee trade: 10 cents P5: with quota: 14 ce-'nts ' PK under free trade: 20 cents PX with quota: 15 cents Px u'tt'ler f'ee trade: 20 cents P5: with quota: 10 cents Px u'tt'ler f'ee trade: 10 cents Px with quota: 1? cents Incorrect Question 39 0 f 2.5 pts The demand curve for cotton per year in the United States is given by the ed uation: 00x: 1503Px. The domestic supply curve for cotton per year in the United States is given by the equation: Q5,US=50+2PX! where OS\"; is the quantityr supplied domestically in millions of pounds, QD is the quantity demanded in millions of pounds and PM is price per pound in cents. The rest of the world, in a situation of free trade, will sell as much cotton as it wants in the US. at a price of 10 cents. That is, the supply of imported cotton is represented by a horizontal line at PX=15 cents_ The United States is currently under free trade, but government wants eliminate imports. What is the lowest possible value for a tariff that would completely eliminate all imports? None of these 5 cam 10 [.2an 2D [.2an
