7. Suppose the market demand for good X is given by Of =60-6P, . If the equilibrium price is $6, then the total value to consumers from buying this good is: a. $48 b. $144 c. $192 d. $182 8. The market demand is Q" =60-6P and the market supply is Of =4P. Suppose the government imposes a price floor of $7 and agrees to purchase all excess units of quantity at that price. What is the cost of the program to the government? a. $70 b. $120 c. $125 d. $100 Answer questions 9-10 below using the following scenario: 9. The equilibrium quantity in the market for good x is Q*=200 when there is no tax. Then a tax of $5 is imposed. As a result, the government is able to raise $750 in tax revenue. The quantity of good x has fallen by: a. 25. b. 50. c. 75. d. 100. 10. The deadweight loss from the tax is: a. $250. b. $75. c. $125. d. $50. 1 1. If the income elasticity for steak is 2.5, a 20% decrease in income will lead to a: a. 50% increase in demand for steak b. 50% decrease in demand for steak c. 8% increase in demand for steak d. 8% decrease in demand for steak 12. The demand for good X is QP = 200 -2Px + _Py -21 . Suppose that P. =50 , P, =$30, / =100 . Based on this information, we know that the demand for good X is: a. Elastic b. Inelastic c. Unitary elastic d. Neither elastic, inelastic nor unitary elastic