A. Inverse supply curve is given byP=2Q+2. If the price of goods went up from 18 to 22, what is the change in producer surplus?

Select one:

a.100

b.64

c.40

d.36

e.None of the above

B. Suppose demand curve is given byQ=35and the government is considering a per unit tax. Which of the following is true? (Note that more than one answer might be correct.)

Select one:

a.The new equilibrium point will depend on whether suppliers or consumers get taxed.

b.If consumers get taxed, they will bear the entire tax burden.

c.Consumers will bear a lower tax burden if suppliers are taxed.

d.If suppliers are taxed, consumers will bear the entire tax burden.

e.Both answers (b) and (d) are correct.

C. Elena's wealth this year is $50,000, and her utility of wealth is u(c)=(c+100)². She has a 30% chance of being in a ski accident this year, leading to a loss of $30,000. If she can buy as many dollars of ski accident insurance for $0.30 per dollar (up to full insurance), how many dollars worth of insurance will Elena purchase?

Select one:

a.$0

b.$3,000

c.$4,000

d.$6,000

e.$30,000

D.

What is Anita's own-price elasticity for good a: if her utility for consumption for two commodities is U(:I:, y) = min{2:1:,y} ?Assume prices for :5 and y are given by P3 = 4 and 3:2. Select one: a. 'I .0 b. 1.5 . c. -0.5 V d. 0.25 e. None of the above. Jacob's rm has a production function given by 17(1), K) : min(L, J?) + 2. What is the long run average cost per unit produced if w = 3. r = 6, and Q = 12'? Select one: - a. 630 b. 100 C. 52.5 d. 39 9.15