A. Let market demand be given by P=20-3Qand supply be given by P=Q. What is the value of consumer surplus at the equilibrium? Select one:

a. 50

b. 80/7

c. 300/8

d. 100/6

B. Let inverse demand be given by P=100-3Qand inverse supply given byP=2Q. Suppose a price floor is set at $70 per unit. What is the loss to society from implementing the price floor?

Select one:

a. 10 b. 20 c. 30 d. 40

C. Arlen, Texas is a small town where 4 individuals each buy propane gas following their individual demands: P = 16 - 2Q, and 3 individuals each buy propane gas following individual demand: P =18- 3Q, where P denotes the price and Q denotes the quantity. For the price range between $16 and $18, the town's aggregate demand is given by _____.

Select one:

a.Q=32-2p

b.Q=50-3p

c. q+18-p d.

q=54-3p

e. None of the above

D. Vincent wants to produce 250 Halloween costumes in a way that minimizes the cost of production. There are two inputs that can be used, A and B. The production function for Q=12-2The cost of each input is $3 per unit. How many units of each input are needed to produce the costumes at the lowest cost?

Select one:

a.A = 4 and B = 100

b.A = 34 and B = 178

c.A = 25 and B = 95

d.A = 36 and B = 180

e.None of the above

E. May Ling is an expected utility maximizer with utility function U(c)=49-In1000/c, wherecis yearly consumption. Which of the following is true?

Select one:

a.She is risk-averse

b.She is risk-neutral

c.She is risk-loving

d.Her indifference curves are linear

e.None of the above